The artist has handed over the entirety of his twenty-five thousand pound honor winnings to the trust for venues, which functions to protect the Britain's independent live music spots.
He was awarded the award on mid-October as his latest record the album was named the best record of the past year.
Fender has decided to give the cash to the MVT, in appreciation 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 shows I performed around the North East, and elsewhere, when I was just getting going," said Fender. "These venues are iconic, but they are struggling."
Since the start of 2023, at least 150 of these spaces have ceased operations – approximately 16% of the entire UK sector.
Recently, well-known musicians like Pulp, Coldplay, 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 independent venues.
He also took part, generating in excess of £100,000 on his recent tour to help numerous grassroots venues across England, Scotland, and Wales.
These funds supported spaces that were facing possible closure due to difficulties arising from water damage, blazes and bereavements, as well as regulatory hurdles, conflicts and sound issues.
Some locations obtained funding support in improving infrastructure and technical equipment that directly benefitted performers and audiences.
"The concept that revenue from performances in big venues backs the independent spots, where it kicks off for performers like me, is just sensible," the star has commented.
He is far from the only musician to give his Mercury Prize funds to good deeds.
Back when they won the prize in 1996 for their release the album, vocalist the singer announced that the group would contribute their winnings to the non-profit War Child.
That year, musician Ms Dynamite split her prize between a few organizations, such as the children's charity and a charity for Sickle Cell.
"I also contributed a £1,000 to my local community centre, to their gymnastics program, because I trained in gymnastics when I was younger and they lacked better apparatus," the artist shared with the media.
In recent years, they contributed their funds to the youth organization that nurtured their group, as well as other grassroots music organisations.
Also winners that year the group donated their winnings to a multiple sclerosis charity after a acquaintance was diagnosed the illness.
"The victory was sufficient," remarked artist Small. "The money was the bonus but we could do without the extra, because we had the cake. So our victory touched the lives of others."
In the past week, the Music Venues Trust shared it had protected several local spots in the South East, by placing them under public stewardship.
One venue in that area and The Croft in that location were acquired under the public acquisition program, which is supported by a national body and supporters who buy "shares" in the venues.