The artist has given the entirety of his £25,000 honor cash to the MVT, which works to protect the Britain's independent live music spots.
The star was given the prize on 16 October as his latest record his work was named the best record of the previous year.
The musician has decided to donate the funds to the trust, in appreciation of the vital role small stages played in his beginning days.
"As an artist couldn't be pursuing what I am doing today if it weren't for all the performances I played around the region, and elsewhere, when I was starting out," said Fender. "These locations are renowned, but they are facing challenges."
From early 2023 onward, more than 150 of these spaces have ceased operations – approximately 16 percent of the total UK scene.
Recently, well-known musicians like Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its initiatives to support the industry, by adding a modest fee to their ticket prices, which goes to help independent venues.
He also joined in, collecting more than £100,000 on his 2024 arena tour to support thirty-eight local spots across England, Scotland, and Wales.
These funds helped venues that were dealing with possible closure due to difficulties stemming from flooding, fires and bereavements, as well as licensing issues, court cases and noise complaints.
Some locations received monetary aid in improving amenities and gear that directly benefitted performers and fans.
"The notion that money from shows in major spaces helps the local stages, where it begins for musicians like me, is just common sense," the star has said.
Fender is not the first artist to contribute his Mercury Prize winnings to charitable organizations.
Back when they received the trophy in 1996 for their record the album, lead singer Cocker announced that the act would give their cash to the charity War Child.
In 2002, artist she divided her prize between multiple organizations, such as the NSPCC and a Sickle Cell organization.
"Additionally, I contributed a thousand pounds to the center, to their gymnastics program, because I did gymnastics when I was growing up and they needed better apparatus," she told the media.
In recent years, they gave their winnings to the local youth club that developed their group, in addition to other independent music bodies.
Also 1994 winners the group gave their winnings to a multiple sclerosis charity after a friend was identified with the condition.
"Winning was sufficient," said singer Heather Small. "The cash was the bonus but we didn't need the bonus, because we had the main prize. So our success impacted another person's life."
Last week, the trust shared it had saved two small stages in that region, by placing them under local control.
The first in the city and the other in Bristol were acquired under the Own Our Venues program, which is supported by a national body and music fans who purchase "shares" in the venues.
