The artist has handed over the entirety of his £25,000 honor prize money to the MVT, which functions to protect the United Kingdom's independent live music spots.
He was given the award on 16 October as his new release People Watching was chosen as the best record of the past year.
He has decided to donate the funds to the trust, in acknowledgment of the essential function small stages played in his early career.
"I couldn't be pursuing my current career if it wasn't for all the shows I played around the North East, and beyond, when I was starting out," said the artist. "These locations are legendary, but they are facing challenges."
Since the start of 2023, over 150 of these spaces have permanently closed – approximately 16% of the whole industry in the UK.
In the last year, well-known musicians including Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its attempts to help venues survive, by applying a minor surcharge to their admission fees, which benefits smaller concert halls.
He also participated, collecting over £100k on his live tour to help thirty-eight local spots across Britain.
The money assisted venues that were facing possible closure due to issues stemming from floods, fires and bereavements, as well as regulatory hurdles, legal disputes and neighbor objections.
Some locations were granted monetary aid in improving amenities and gear that positively impacted performers and fans.
"The notion that funds from shows in major spaces backs the smaller venues, where it kicks off for musicians like me, is just sensible," Fender has commented.
Fender is among several artists to donate his Mercury Prize winnings to charitable organizations.
In Pulp won the prize in the mid-90s for their record Different Class, lead singer Cocker declared that the group would donate their winnings to the charity War Child.
During 2002, rapper and singer she shared her award between several charities, like the NSPCC and a Sickle Cell charity.
"I also contributed a thousand pounds to my local community centre, to their classes, because I practiced gymnastics when I was younger and they required better apparatus," Ms Dynamite shared with a publication.
In recent years, the band gave their funds to the youth organization that developed their group, in addition to other independent music bodies.
Additionally the 1994 recipients M People donated their award to a charity for MS after a acquaintance was diagnosed the condition.
"The victory was quite enough," said vocalist the singer. "The money was the cherry on top but we didn't need the cherry, because we had the main prize. So our success affected somebody else's life."
Last week, the Music Venues Trust revealed it had rescued several local spots in south-east England, by transferring them to local control.
The Joiners in Southampton and The Croft in Bristol were purchased under the community ownership initiative, which is funded by a national body and music fans who acquire "stakes" in the venues.