The star has handed over the complete sum of his £25,000 honor cash to the trust for venues, which functions to preserve the UK's small live music spots.
He was given the prize on October 16 as his latest record his work was chosen as the top album of the previous year.
The musician has decided to hand the money over to the trust, in appreciation of the vital role grassroots venues played in his initial steps.
"I would not have achieved what I am doing today if it wasn't for all the shows I played around the region, and elsewhere, when I was starting out," remarked Fender. "These spaces are iconic, but they are struggling."
From early 2023 onward, at least 150 of these spaces have ceased operations – approximately one-sixth of the whole industry in the UK.
In the last year, major artists such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its efforts to keep the scene afloat, by adding a modest fee to their ticket costs, which goes to help independent venues.
He also participated, generating more than £100,000 on his 2024 arena tour to help numerous small stages across Britain.
The donation helped locations that were dealing with possible closure due to difficulties arising from water damage, fires and bereavements, as well as permit problems, conflicts and sound issues.
Additional spaces were granted monetary aid in upgrading amenities and sound and lighting systems that positively impacted performers and audiences.
"The idea that money from concerts in big venues supports the smaller venues, where it begins for musicians like me, is just logical," the star has said.
Fender is far from the only musician to give his Mercury Prize prize money to worthy causes.
Back when the band won the prize in the year 1996 for their record their work, vocalist Cocker announced that the act would give their prize money to the charity War Child.
During 2002, musician the artist divided her award between several organizations, such as the NSPCC and a charity for Sickle Cell.
"I also contributed a grand to the center, to their gymnastics class, because I did gymnastics when I was growing up and they needed updated gear," Ms Dynamite told outlets.
Previously, they contributed their prize money to the local youth club that supported their band, alongside other grassroots music organisations.
And the 1994 recipients M People donated their award to a MS organization after a friend was identified with the condition.
"The victory was sufficient," said singer the singer. "The cash was the cherry on top but we didn't need the cherry, because we had the cake. So our success impacted somebody else's life."
Last week, the Music Venues Trust revealed it had rescued several small stages in south-east England, by transferring them to public stewardship.
The first in that area and the other in that location were purchased under the public acquisition initiative, which is funded by Arts Council England and supporters who purchase "stakes" in the venues.