The artist has handed over the full amount of his twenty-five thousand pound honor cash to the trust for venues, which functions to protect the UK's grassroots concert spaces.
Fender was awarded the cheque on mid-October as his latest record the album was declared the best record of the previous year.
He has chosen to hand the money over to the MVT, in acknowledgment of the essential function grassroots venues had in his beginning days.
"As an artist would not have achieved my current career if it wasn't for all the shows I did around the area, and further afield, when I was starting out," stated the artist. "These spaces are renowned, but they are facing challenges."
From early 2023 onward, at least 150 of these venues have ceased operations – roughly 16 percent of the total UK scene.
Over the past year, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to support the industry, by including a modest fee to their ticket prices, which goes to help local stages.
He also took part, raising in excess of £100,000 on his live tour to assist 38 small stages across England, Scotland, and Wales.
The donation supported venues that were confronting potential shutdown due to challenges caused by water damage, fires and family tragedies, as well as regulatory hurdles, conflicts and noise complaints.
Some locations received financial assistance in improving amenities and gear that directly benefitted performers and audiences.
"The notion that money from performances in major spaces helps the independent spots, where it begins for performers like me, is just common sense," the star has stated.
Fender is not the first artist to give his Mercury Prize funds to charitable organizations.
When the band won the award in the year 1996 for their record their work, lead singer Cocker declared that the act would give their prize money to the organization War Child.
During 2002, artist Ms Dynamite divided her award among several good causes, including the NSPCC and a Sickle Cell organization.
"I also contributed a £1,000 to the center, to their gymnastics program, because I trained in gymnastics when I was a child and they needed new equipment," the artist explained to the media.
In recent years, the band contributed their funds to the youth organization that nurtured their group, in addition to other local music groups.
Additionally the 1994 recipients M People gave their award to a charity for MS after a friend was diagnosed the disease.
"Winning was quite enough," said singer Heather Small. "The cash was the bonus but we didn't require the extra, because we had the main prize. So our winning affected another person's life."
Last week, the trust revealed it had saved a couple of small stages in that region, by placing them under community ownership.
The Joiners in the city and The Croft in that location were acquired under the community ownership scheme, which is backed by a national body and music fans who purchase "shares" in the buildings.
