The star has handed over the complete sum of his £25,000 award prize money to the trust for venues, which operates to preserve the UK's grassroots concert spaces.
He was given the award on mid-October as his new release his work was declared the best record of the last 12 months.
He has decided to donate the funds to the trust, in recognition of the essential function local spots fulfilled in his early career.
"I couldn't be pursuing my current career if it weren't for all the gigs I performed around the area, and elsewhere, when I was starting out," said Fender. "These venues are renowned, but they are in difficulty."
Since the start of 2023, at least 150 of these locations have permanently closed – about one-sixth of the whole industry in the UK.
Recently, top acts like Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the MVT in its initiatives to support the industry, by adding a small levy to their admission fees, which benefits smaller concert halls.
He also took part, collecting in excess of £100,000 on his 2024 arena tour to support 38 grassroots venues across the UK.
These funds helped locations that were facing potential shutdown due to difficulties stemming from water damage, fires and family tragedies, as well as permit problems, legal disputes and noise complaints.
Some locations obtained monetary aid in modernizing infrastructure and gear that positively impacted artists and audiences.
"The concept that revenue from concerts in major spaces supports the smaller venues, where it begins for artists like me, is just common sense," Fender has commented.
The musician is far from the only musician to donate his Mercury Prize funds to worthy causes.
When Pulp won the trophy in 1996 for their release Different Class, lead singer Cocker stated that the act would give their cash to the organization War Child.
During 2002, musician Ms Dynamite divided her bounty between several good causes, like the NSPCC and a charity for Sickle Cell.
"Additionally, I donated a grand to Highgate Newtown, to their classes, because I trained in gymnastics when I was younger and they lacked better apparatus," the artist explained to outlets.
In recent years, Ezra Collective contributed their winnings to the local youth club that nurtured their act, as well as other independent music bodies.
And 1994 winners the group donated their award to a charity for MS after a acquaintance was found to have the illness.
"The victory was ample," stated artist Heather Small. "The prize was the extra but we could do without the extra, because we had the honor. So our victory touched the lives of others."
Last week, the Music Venues Trust revealed it had protected a couple of small stages in south-east England, by transferring them to public stewardship.
The Joiners in the city and the other in Bristol were purchased under the community ownership program, which is funded by a national body and music fans who buy "ownership units" in the venues.
