The star has donated the full amount of his twenty-five thousand pound award cash to the trust for venues, which operates to preserve the Britain's independent live music spots.
Fender was given the award on October 16 as his latest record his work was declared the best record of the past year.
He has chosen to donate the funds to the MVT, in acknowledgment of the crucial part local spots had in his beginning days.
"I couldn't be pursuing this success if it hadn't been for all the shows I performed around the North East, and beyond, when I was just getting going," said Fender. "These spaces are iconic, but they are struggling."
Since the start of 2023, more than 150 of these spaces have shut down – approximately 16 percent of the entire UK sector.
Recently, well-known musicians like the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to support the industry, by adding a modest fee to their ticket prices, which supports smaller concert halls.
Fender also participated, collecting more than £100,000 on his recent tour to support numerous small stages across England, Scotland, and Wales.
The donation helped venues that were dealing with potential shutdown due to difficulties arising from flooding, fire incidents and bereavements, as well as regulatory hurdles, legal disputes and neighbor objections.
Some locations received funding support in upgrading amenities and technical equipment that positively impacted performers and concertgoers.
"The notion that revenue from performances in major spaces backs the local stages, where it all starts for artists like me, is just sensible," the star has said.
He is among several artists to give his Mercury Prize prize money to charitable organizations.
When the band received the award in the mid-90s for their album Different Class, vocalist the singer stated that the act would donate their winnings to the organization War Child.
During 2002, artist she shared her award across multiple charities, like the NSPCC and a charity for Sickle Cell.
"I also donated a thousand pounds to the center, to their gymnastics program, because I did gymnastics when I was younger and they needed new equipment," Ms Dynamite told the media.
Previously, Ezra Collective contributed their prize money to the local youth club that nurtured their act, as well as other independent music bodies.
Additionally the 1994 recipients they donated their prize to a multiple sclerosis charity after a friend was diagnosed the condition.
"The victory was sufficient," stated artist the singer. "The cash was the extra but we didn't need the extra, because we had the main prize. So our victory impacted the lives of others."
Last week, the MVT announced it had protected two grassroots venues in south-east England, by transferring them to local control.
One venue in that area and The Croft in the city were bought under the Own Our Venues scheme, which is supported by a national body and enthusiasts who acquire "shares" in the venues.