The artist has handed over the entirety of his twenty-five thousand pound honor winnings to the trust for venues, which functions to save the UK's grassroots live music spots.
He was given the prize on 16 October as his third album People Watching was named the best record of the previous year.
Fender has opted to hand the money over to the trust, in recognition of the vital role grassroots venues fulfilled in his early career.
"As an artist would not have achieved my current career if it weren't for all the performances I did around the North East, and further afield, when I was starting out," remarked Fender. "These spaces are renowned, but they are struggling."
Beginning in 2023, over 150 of these spaces have shut down – approximately one-sixth of the whole industry in the UK.
Recently, major artists such as the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to keep the scene afloat, by applying a modest fee to their ticket prices, which benefits smaller concert halls.
Fender also participated, raising over £100k on his 2024 arena tour to support numerous small stages across the UK.
These funds supported spaces that were facing potential shutdown due to difficulties caused by water damage, fires and family tragedies, as well as regulatory hurdles, conflicts and noise complaints.
Other venues were granted funding support in improving amenities and sound and lighting systems that directly benefitted performers and audiences.
"The concept that money from shows in major spaces helps the independent spots, where it begins for artists like me, is just common sense," the star has said.
The musician is far from the only musician to give his Mercury Prize prize money to worthy causes.
Back when Pulp won the award in the mid-90s for their record the album, vocalist Jarvis Cocker declared that the group would contribute their prize money to the non-profit War Child.
In 2002, artist the artist shared her bounty among a few organizations, such as the NSPCC and a charity for Sickle Cell.
"And I donated a £1,000 to the center, to their gymnastics program, because I practiced gymnastics when I was growing up and they required new equipment," she told a publication.
Previously, the band gave their winnings to the youth organization that developed their group, as well as other independent music bodies.
And the 1994 recipients they donated their award to a multiple sclerosis charity after a friend was identified with the condition.
"Winning was quite enough," remarked singer Small. "The money was the cherry on top but we didn't need the cherry, because we had the main prize. So our winning impacted the lives of others."
In the past week, the MVT revealed it had saved a couple of local spots in the South East, by bringing them into community ownership.
One venue in Southampton and the other in that location were purchased under the community ownership program, which is funded by a national body and music fans who purchase "stakes" in the buildings.