The artist has handed over the entirety of his £25k honor winnings to the trust for venues, which functions to preserve the United Kingdom's grassroots concert spaces.
He was presented with the prize on October 16 as his third album his work was named the top album of the last 12 months.
Fender has opted to hand the money over to the MVT, in recognition of the vital role grassroots venues fulfilled in his early career.
"I wouldn't be doing this success if it hadn't been for all the performances I played around the North East, and beyond, when I was just getting going," said the artist. "These spaces are legendary, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have permanently closed – about one-sixth of the entire UK sector.
Recently, top acts such as the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its initiatives to keep the scene afloat, by applying a minor surcharge to their ticket prices, which benefits local stages.
He also joined in, collecting over £100k on his recent tour to assist thirty-eight grassroots venues across England, Scotland, and Wales.
The donation helped venues that were dealing with potential shutdown due to difficulties arising from floods, fire incidents and bereavements, as well as regulatory hurdles, legal disputes and sound issues.
Some locations obtained funding support in improving amenities and gear that directly benefitted performers and fans.
"The concept that revenue from concerts in big venues supports the independent spots, where it all starts for artists like me, is just common sense," the star has commented.
He is among several artists to contribute his Mercury Prize funds to worthy causes.
When they earned the prize in the mid-90s for their album the album, vocalist Jarvis Cocker declared that the band would give their winnings to the non-profit War Child.
During 2002, musician the artist divided her award between a few charities, such as the children's charity and a Sickle Cell organization.
"I also donated a £1,000 to the center, to their classes, because I trained in gymnastics when I was a child and they required new equipment," the artist shared with the media.
Previously, the band donated their prize money to the local youth club that developed their group, alongside other grassroots music organisations.
Additionally 1994 winners the group gave their award to a charity for MS after a friend was diagnosed the illness.
"The victory was sufficient," said singer Heather Small. "The cash was the cherry on top but we didn't need the cherry, because we had the honor. So our success impacted somebody else's life."
Recently, the trust shared it had saved a couple of small stages in that region, by placing them under community ownership.
The first in the city and the other in the city were acquired under the Own Our Venues initiative, which is funded by the arts council and enthusiasts who purchase "stakes" in the properties.