The artist has donated the complete sum of his £25k award cash to the MVT, which operates to protect the United Kingdom's independent music venues.
Fender was given the award on 16 October as his new release the album was chosen as the best record of the last 12 months.
He has opted to give the cash to the trust, in recognition of the essential function local spots fulfilled in his early career.
"As an artist couldn't be pursuing what I am doing today if it weren't for all the shows I played around the region, and elsewhere, when I was just getting going," said Fender. "These venues are iconic, but they are facing challenges."
Beginning in 2023, over 150 of these spaces have permanently closed – about one-sixth of the total UK scene.
Over the past year, well-known musicians including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to keep the scene afloat, by including a modest fee to their admission fees, which supports independent venues.
He also participated, raising more than £100,000 on his live tour to assist 38 small stages across Britain.
These funds assisted spaces that were dealing with possible closure due to issues arising from floods, fires and personal losses, as well as permit problems, legal disputes and neighbor objections.
Additional spaces received funding support in upgrading infrastructure and technical equipment that helped musicians and audiences.
"The concept that funds from performances in large arenas backs the local stages, where it all starts for artists like me, is just common sense," Fender has said.
He is not the first artist to give his Mercury Prize winnings to worthy causes.
Back when Pulp earned the prize in 1996 for their record the album, frontman Jarvis Cocker announced that the act would donate their prize money to the charity War Child.
In 2002, rapper and singer the artist shared her award among multiple good causes, like the NSPCC and a charity for Sickle Cell.
"I also gave a thousand pounds to my local community centre, to their classes, because I did gymnastics when I was a child and they lacked updated gear," Ms Dynamite shared with the media.
Two years ago, they donated their prize money to the youth organization that developed their group, in addition to other independent music bodies.
And 1994 winners M People contributed their winnings to a multiple sclerosis charity after a friend was found to have the condition.
"Winning was ample," stated artist the singer. "The money was the bonus but we didn't require the extra, because we had the cake. So our winning impacted another person's life."
Recently, the Music Venues Trust shared it had protected two grassroots venues in south-east England, by transferring them to local control.
The first in the city and the second in the city were bought under the Own Our Venues scheme, which is funded by a national body and supporters who buy "stakes" in the properties.
