The artist has handed over the complete sum of his £25k honor prize money to the MVT, which works to preserve the Britain's independent live music spots.
The star was given the award on 16 October as his latest record People Watching was declared the best record of the last 12 months.
He has opted to give the cash to the trust, in appreciation of the vital role grassroots venues played in his beginning days.
"I wouldn't be doing what I am doing today if it hadn't been for all the performances I did around the region, and further afield, when I was just getting going," remarked Fender. "These locations are iconic, but they are facing challenges."
Since the start of 2023, over 150 of these spaces have ceased operations – about 16 percent of the total UK scene.
Over the past year, major artists including the band Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the trust in its attempts to keep the scene afloat, by applying a minor surcharge to their ticket prices, which supports local stages.
Fender also participated, collecting in excess of £100,000 on his live tour to assist 38 grassroots venues across Britain.
The donation helped spaces that were dealing with potential shutdown due to challenges stemming from water damage, fire incidents and personal losses, as well as licensing issues, conflicts and sound issues.
Some locations received funding support in modernizing facilities and technical equipment that positively impacted artists and concertgoers.
"The idea that funds from performances in major spaces helps the independent spots, where it kicks off for musicians like me, is just common sense," the star has stated.
Fender is far from the only musician to contribute his Mercury Prize funds to good deeds.
Back when the band won the prize in the year 1996 for their album the album, lead singer Jarvis Cocker announced that the act would donate their cash to the organization War Child.
During 2002, rapper and singer Ms Dynamite divided her prize among several organizations, such as the NSPCC and a charity for Sickle Cell.
"And I donated a grand to my local community centre, to their gymnastics program, because I trained in gymnastics when I was growing up and they needed new equipment," the artist told a publication.
Two years ago, they contributed their funds to the community center that nurtured their band, alongside other independent music bodies.
Also 1994 winners M People gave their prize to a multiple sclerosis charity after a close contact was identified with the condition.
"Winning was ample," stated artist the singer. "The cash was the cherry on top but we didn't need the bonus, because we had the honor. So our success affected the lives of others."
Last week, the MVT announced it had rescued two local spots in that region, by placing them under community ownership.
One venue in the city and the other in that location were acquired under the community ownership program, which is supported by the arts council and supporters who buy "stakes" in the venues.
