The artist has given the complete sum of his twenty-five thousand pound honor cash to the trust for venues, which works to protect the United Kingdom's independent music venues.
He was awarded the cheque on 16 October as his latest record his work was named the best record of the past year.
The musician has decided to hand the money over to the MVT, in recognition of the crucial part small stages played in his early career.
"I wouldn't be doing what I am doing today if it wasn't for all the performances I performed around the region, and further afield, when I was just getting going," remarked Fender. "These venues are renowned, but they are in difficulty."
Since the start of 2023, over 150 of these venues have permanently closed – approximately 16% of the entire UK sector.
Over the past year, major artists such as the band Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all backed the Music Venues Trust in its efforts to support the industry, by adding a small levy to their ticket prices, which supports independent venues.
Fender also took part, generating over £100k on his 2024 arena tour to help 38 grassroots venues across Britain.
These funds assisted spaces that were confronting potential shutdown due to challenges caused by flooding, fire incidents and bereavements, as well as permit problems, court cases and sound issues.
Other venues obtained financial assistance in upgrading infrastructure and sound and lighting systems that positively impacted musicians and fans.
"The concept that money from performances in big venues backs the local stages, where it begins for performers like me, is just common sense," the star has commented.
The musician is far from the only musician to contribute his Mercury Prize funds to charitable organizations.
Back when the band won the trophy in the mid-90s for their album their work, frontman the singer announced that the act would give their winnings to the non-profit War Child.
That year, rapper and singer the artist split her prize between several good causes, like the children's charity and a Sickle Cell organization.
"Additionally, I contributed a thousand pounds to my local community centre, to their gymnastics class, because I practiced gymnastics when I was a child and they lacked new equipment," Ms Dynamite explained to a publication.
Two years ago, they gave their winnings to the local youth club that nurtured their group, as well as other grassroots music organisations.
Also winners that year they gave their prize to a charity for MS after a close contact was found to have the illness.
"The victory was ample," stated artist Heather Small. "The money was the extra but we didn't require the bonus, because we had the honor. So our success touched somebody else's life."
Last week, the MVT shared it had saved two small stages in that region, by transferring them to community ownership.
The Joiners in Southampton and the second in the city were purchased under the Own Our Venues program, which is backed by Arts Council England and supporters who acquire "shares" in the properties.