The star has handed over the entirety of his twenty-five thousand pound honor cash to the trust for venues, which operates to protect the Britain's small live music spots.
The star was given the award on October 16 as his latest record the album was chosen as the top album of the last 12 months.
The musician has decided to donate the funds to the MVT, in appreciation of the vital role local spots played in his initial steps.
"As an artist would not have achieved this success if it hadn't been for all the performances I performed around the area, and beyond, when I was starting out," remarked the artist. "These venues are iconic, but they are struggling."
Since the start of 2023, more than 150 of these locations have ceased operations – about one-sixth of the total UK scene.
In the last year, top acts like Pulp, Coldplay, Katy Perry and Sheeran have all backed the MVT in its attempts to help venues survive, by including a minor surcharge to their admission fees, which benefits smaller concert halls.
Fender also participated, collecting in excess of £100,000 on his live tour to help numerous grassroots venues across the UK.
The donation assisted spaces that were dealing with imminent closure due to challenges arising from flooding, blazes and bereavements, as well as permit problems, conflicts and sound issues.
Some locations were granted funding support in modernizing facilities and sound and lighting systems that directly benefitted performers and audiences.
"The idea that money from concerts in large arenas backs the independent spots, where it kicks off for musicians like me, is just sensible," Fender has stated.
He is not the first artist to contribute his Mercury Prize funds to worthy causes.
Back when the band won the award in 1996 for their album the album, vocalist the singer stated that the band would donate their winnings to the charity War Child.
During 2002, artist Ms Dynamite shared her award among multiple organizations, including the children's charity and a Sickle Cell organization.
"Additionally, I donated a £1,000 to my local community centre, to their gymnastics class, because I trained in gymnastics when I was growing up and they lacked new equipment," the artist told a publication.
Two years ago, the band contributed their funds to the youth organization that nurtured their group, alongside other independent music bodies.
Also winners that year they contributed their prize to a MS organization after a friend was diagnosed the disease.
"Winning was ample," stated singer the singer. "The prize was the bonus but we could do without the cherry, because we had the main prize. So our winning impacted another person's life."
Recently, the trust shared it had protected a couple of small stages in the South East, by bringing them into community ownership.
The first in that area and The Croft in the city were bought under the Own Our Venues program, which is funded by a national body and enthusiasts who acquire "shares" in the properties.