The artist has donated the full amount of his £25,000 award winnings to the MVT, which functions to preserve the United Kingdom's grassroots music venues.
The star was presented with the prize on mid-October as his latest record People Watching was chosen as the outstanding release of the past year.
The musician has decided to give the cash to the trust, in appreciation of the vital role grassroots venues played in his beginning days.
"I wouldn't be doing my current career if it wasn't for all the shows I did around the area, and beyond, when I was starting out," said Fender. "These venues are iconic, but they are in difficulty."
Since the start of 2023, over 150 of these venues have shut down – approximately one-sixth of the whole industry in the UK.
In the last year, top acts including the band Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the Music Venues Trust in its attempts to support the industry, by including a small levy to their admission fees, which goes to help local stages.
He also took part, raising in excess of £100,000 on his live tour to help 38 local spots across the UK.
These funds assisted spaces that were facing potential shutdown due to challenges arising from flooding, blazes and bereavements, as well as licensing issues, legal disputes and neighbor objections.
Other venues received monetary aid in improving infrastructure and gear that helped performers and audiences.
"The concept that funds from performances in major spaces supports the smaller venues, where it kicks off for artists like me, is just logical," the star has stated.
The musician is among several artists to donate his Mercury Prize funds to charitable organizations.
Back when Pulp earned the prize in the mid-90s for their release their work, vocalist Jarvis Cocker stated that the group would donate their prize money to the charity War Child.
In 2002, rapper and singer Ms Dynamite shared her award among multiple organizations, such as the children's charity and a charity for Sickle Cell.
"Additionally, I donated a £1,000 to my local community centre, to their gymnastics class, because I did gymnastics when I was a child and they lacked new equipment," Ms Dynamite told a publication.
Two years ago, the band gave their prize money to the local youth club that supported their act, as well as other local music groups.
Also 1994 winners the group donated their winnings to a charity for MS after a close contact was identified with the illness.
"Winning was sufficient," remarked singer the singer. "The money was the bonus but we didn't require the cherry, because we had the main prize. So our success affected another person's life."
Last week, the MVT shared it had rescued several grassroots venues in that region, by transferring them to local control.
The first in that area and the other in the city were purchased under the Own Our Venues initiative, which is supported by the arts council and music fans who acquire "ownership units" in the properties.
