The star has handed over the full amount of his twenty-five thousand pound award cash to the trust for venues, which functions to protect the Britain's grassroots live music spots.
Fender was given the cheque on mid-October as his third album the album was chosen as the outstanding release of the past year.
The musician has chosen to hand the money over to the MVT, in recognition of the crucial part small stages fulfilled in his beginning days.
"As an artist couldn't be pursuing what I am doing today if it wasn't for all the performances I did around the area, and beyond, when I was just getting going," stated Fender. "These locations are renowned, but they are struggling."
From early 2023 onward, over 150 of these locations have permanently closed – about 16% of the whole industry in the UK.
Recently, well-known musicians including the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to support the industry, by adding a minor surcharge to their ticket costs, which goes to help smaller concert halls.
Fender also joined in, raising more than £100,000 on his live tour to help numerous grassroots venues across the UK.
The donation assisted locations that were dealing with imminent closure due to difficulties caused by water damage, blazes and family tragedies, as well as permit problems, legal disputes and neighbor objections.
Additional spaces were granted financial assistance in improving facilities and technical equipment that positively impacted performers and concertgoers.
"The notion that funds from shows in major spaces supports the smaller venues, where it kicks off for artists like me, is just sensible," Fender has stated.
He is not the first artist to give his Mercury Prize prize money to good deeds.
When Pulp earned the trophy in the year 1996 for their release Different Class, lead singer Jarvis Cocker announced that the group would donate their winnings to the non-profit War Child.
That year, musician the artist shared her award between a few good causes, like the NSPCC and a Sickle Cell organization.
"And I donated a grand to the center, to their gymnastics class, because I did gymnastics when I was growing up and they required better apparatus," Ms Dynamite explained to outlets.
In recent years, the band gave their prize money to the community center that developed their act, in addition to other independent music bodies.
Additionally winners that year M People donated their winnings to a MS organization after a close contact was identified with the disease.
"Receiving the award was sufficient," stated artist Heather Small. "The prize was the extra but we didn't require the extra, because we had the main prize. So our victory affected another person's life."
Last week, the Music Venues Trust shared it had rescued several small stages in south-east England, by bringing them into local control.
The first in that area and The Croft in the city were purchased under the Own Our Venues program, which is funded by Arts Council England and enthusiasts who acquire "shares" in the properties.