The artist has handed over the complete sum of his £25,000 honor winnings to the trust for venues, which operates to preserve the UK's small music venues.
The star was awarded the award on October 16 as his latest record People Watching was chosen as the top album of the last 12 months.
He has opted to donate the funds to the MVT, in acknowledgment of the essential function grassroots venues played in his initial steps.
"As an artist couldn't be pursuing what I am doing today if it weren't for all the performances I did around the area, and elsewhere, when I was beginning," said the artist. "These spaces are iconic, but they are facing challenges."
Beginning in 2023, at least 150 of these spaces have shut down – about 16% of the entire UK sector.
In the last year, top acts including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the trust in its initiatives to keep the scene afloat, by including a modest fee to their ticket prices, which goes to help smaller concert halls.
Fender also took part, raising more than £100,000 on his live tour to help numerous local spots across England, Scotland, and Wales.
The donation supported venues that were confronting imminent closure due to issues caused by floods, fires and personal losses, as well as regulatory hurdles, court cases and sound issues.
Some locations received monetary aid in modernizing amenities and gear that directly benefitted performers and concertgoers.
"The notion that money from shows in big venues helps the smaller venues, where it all starts for musicians like me, is just common sense," the star has commented.
He is far from the only musician to give his Mercury Prize winnings to worthy causes.
When Pulp earned the trophy in the mid-90s for their record the album, lead singer the singer declared that the group would donate their cash to the organization War Child.
That year, musician the artist shared her award between several organizations, including the NSPCC and a charity for Sickle Cell.
"I also gave a grand to the center, to their gymnastics program, because I did gymnastics when I was a child and they required updated gear," Ms Dynamite shared with a publication.
In recent years, Ezra Collective gave their funds to the local youth club that developed their act, alongside other local music groups.
And winners that year M People gave their award to a charity for MS after a friend was identified with the condition.
"The victory was quite enough," said singer the singer. "The cash was the extra but we didn't need the cherry, because we had the cake. So our victory impacted another person's life."
In the past week, the trust announced it had rescued several grassroots venues in that region, by placing them under community ownership.
The first in the city and The Croft in Bristol were bought under the public acquisition initiative, which is backed by a national body and music fans who acquire "shares" in the properties.
