The artist has given the complete sum of his £25k award winnings to the MVT, which operates to protect the UK's grassroots concert spaces.
Fender was presented with the award on 16 October as his latest record People Watching was chosen as the top album of the previous year.
Fender has opted to give the cash to the trust, in appreciation of the vital role local spots had in his early career.
"I wouldn't be doing this success if it wasn't for all the gigs I played around the region, and elsewhere, when I was beginning," remarked Fender. "These venues are iconic, but they are struggling."
Beginning in 2023, more than 150 of these spaces have shut down – roughly one-sixth of the entire UK sector.
Recently, major artists like Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its initiatives to help venues survive, by including a modest fee to their ticket prices, which supports independent venues.
Fender also joined in, collecting more than £100,000 on his recent tour to support numerous grassroots venues across England, Scotland, and Wales.
The money helped locations that were dealing with potential shutdown due to challenges caused by flooding, fires and bereavements, as well as licensing issues, conflicts and sound issues.
Other venues received financial assistance in modernizing amenities and sound and lighting systems that positively impacted artists and concertgoers.
"The idea that funds from concerts in large arenas supports the independent spots, where it all starts for musicians like me, is just logical," Fender has said.
He is among several artists to donate his Mercury Prize winnings to good deeds.
Back when the band earned the prize in the year 1996 for their record Different Class, frontman Jarvis Cocker declared that the group would give their winnings to the charity War Child.
In 2002, rapper and singer she divided her bounty among a few organizations, like the NSPCC and a charity for Sickle Cell.
"I also gave a thousand pounds to the center, to their gymnastics class, because I practiced gymnastics when I was a child and they lacked updated gear," the artist explained to the media.
Previously, they contributed their prize money to the youth organization that developed their band, alongside other local music groups.
And 1994 winners the group contributed their award to a multiple sclerosis charity after a acquaintance was diagnosed the condition.
"Receiving the award was quite enough," remarked singer the singer. "The money was the extra but we didn't require the extra, because we had the honor. So our success affected somebody else's life."
Last week, the trust revealed it had rescued two small stages in that region, by transferring them to community ownership.
The Joiners in the city and the other in Bristol were acquired under the public acquisition scheme, which is funded by Arts Council England and enthusiasts who purchase "shares" in the venues.