The star has donated the full amount of his £25k award prize money to the MVT, which works to protect the UK's independent concert spaces.
He was presented with the award on 16 October as his latest record his work was chosen as the outstanding release of the previous year.
Fender has decided to donate the funds to the trust, in acknowledgment of the vital role local spots played in his initial steps.
"I couldn't be pursuing what I am doing today if it wasn't for all the performances I played around the region, and beyond, when I was just getting going," remarked the artist. "These venues are legendary, but they are struggling."
Beginning in 2023, at least 150 of these venues have permanently closed – about 16% of the whole industry in the UK.
In the last year, well-known musicians including Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its attempts to keep the scene afloat, by applying a small levy to their ticket costs, which supports independent venues.
Fender also took part, collecting more than £100,000 on his recent tour to support thirty-eight local spots across Britain.
These funds helped locations that were facing potential shutdown due to challenges arising from flooding, fire incidents and family tragedies, as well as regulatory hurdles, court cases and neighbor objections.
Some locations obtained financial assistance in modernizing facilities and sound and lighting systems that directly benefitted artists and concertgoers.
"The concept that funds from concerts in large arenas supports the independent spots, where it begins for musicians like me, is just common sense," the star has commented.
He is not the first artist to give his Mercury Prize funds to good deeds.
When Pulp won the trophy in the mid-90s for their album the album, lead singer Cocker declared that the band would contribute their cash to the non-profit the charity.
That year, musician Ms Dynamite divided her prize across multiple good causes, such as the NSPCC and a charity for Sickle Cell.
"Additionally, I contributed a thousand pounds to the center, to their gymnastics program, because I trained in gymnastics when I was a child and they required better apparatus," Ms Dynamite explained to outlets.
In recent years, Ezra Collective gave their winnings to the youth organization that nurtured their group, in addition to other local music groups.
And the 1994 recipients the group donated their winnings to a multiple sclerosis charity after a friend was identified with the illness.
"Winning was ample," said vocalist Heather Small. "The cash was the extra but we didn't require the bonus, because we had the honor. So our winning affected the lives of others."
Last week, the trust revealed it had rescued a couple of small stages in that region, by bringing them into community ownership.
The Joiners in that area and The Croft in the city were bought under the Own Our Venues program, which is funded by Arts Council England and enthusiasts who buy "shares" in the venues.