The star has given the full amount of his £25k honor winnings to the trust for venues, which functions to preserve the UK's small music venues.
He was awarded the prize on October 16 as his third album People Watching was declared the best record of the last 12 months.
The musician has decided to give the cash to the MVT, in recognition of the crucial part small stages had in his initial steps.
"I personally couldn't be pursuing what I am doing today if it weren't for all the performances I played around the North East, and elsewhere, when I was starting out," stated Fender. "These locations are renowned, but they are in difficulty."
Since the start of 2023, more than 150 of these spaces have shut down – about 16 percent of the whole industry in the UK.
Over the past year, major artists including the band Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its initiatives to support the industry, by including a small levy to their admission fees, which supports smaller concert halls.
He also took part, raising more than £100,000 on his recent tour to support 38 small stages across England, Scotland, and Wales.
The money supported locations that were facing imminent closure due to difficulties arising from flooding, blazes and personal losses, as well as licensing issues, court cases and neighbor objections.
Other venues received financial assistance in modernizing amenities and gear that positively impacted performers and concertgoers.
"The idea that revenue from shows in big venues helps the local stages, where it begins for performers like me, is just logical," the star has commented.
He is among several artists to give his Mercury Prize prize money to worthy causes.
Back when Pulp won the award in the year 1996 for their record their work, vocalist the singer declared that the group would donate their winnings to the organization the charity.
In 2002, artist Ms Dynamite shared her award between a few organizations, like the NSPCC and a Sickle Cell organization.
"And I contributed a thousand pounds to the center, to their classes, because I trained in gymnastics when I was a child and they required updated gear," she explained to a publication.
In recent years, they gave their winnings to the youth organization that nurtured their act, as well as other independent music bodies.
And 1994 winners they contributed their award to a charity for MS after a friend was found to have the condition.
"Winning was quite enough," stated vocalist Small. "The cash was the bonus but we could do without the extra, because we had the honor. So our winning touched another person's life."
In the past week, the Music Venues Trust shared it had rescued two grassroots venues in that region, by placing them under community ownership.
The first in Southampton and the second in Bristol were bought under the community ownership scheme, which is funded by Arts Council England and enthusiasts who acquire "shares" in the properties.
