The artist has handed over the full amount of his twenty-five thousand pound honor cash to the trust for venues, which works to protect the UK's independent concert spaces.
He was given the cheque on mid-October as his latest record People Watching was named the top album of the previous year.
Fender has opted to give the cash to the MVT, in appreciation of the essential function grassroots venues fulfilled in his initial steps.
"I would not have achieved my current career if it hadn't been for all the gigs I played around the area, and further afield, when I was starting out," said the artist. "These spaces are iconic, but they are struggling."
Beginning in 2023, more than 150 of these locations have permanently closed – approximately one-sixth of the entire UK sector.
Recently, major artists including the band Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the MVT in its efforts to help venues survive, by adding a small levy to their admission fees, which benefits independent venues.
He also took part, generating in excess of £100,000 on his recent tour to help thirty-eight grassroots venues across the UK.
The donation assisted spaces that were dealing with imminent closure due to issues stemming from water damage, fires and bereavements, as well as licensing issues, legal disputes and sound issues.
Some locations received monetary aid in improving infrastructure and technical equipment that directly benefitted performers and concertgoers.
"The notion that revenue from performances in big venues backs the smaller venues, where it begins for musicians like me, is just sensible," Fender has commented.
The musician is not the first artist to contribute his Mercury Prize winnings to good deeds.
When they received the award in the year 1996 for their album Different Class, lead singer Jarvis Cocker stated that the group would donate their prize money to the non-profit the charity.
That year, artist Ms Dynamite shared her prize among multiple good causes, such as the NSPCC and a Sickle Cell charity.
"I also contributed a grand to the center, to their classes, because I did gymnastics when I was growing up and they needed updated gear," the artist told a publication.
Two years ago, the band gave their prize money to the youth organization that developed their band, in addition to other grassroots music organisations.
And 1994 winners M People contributed their prize to a charity for MS after a close contact was found to have the condition.
"The victory was quite enough," stated artist Small. "The prize was the bonus but we didn't require the bonus, because we had the main prize. So our victory affected the lives of others."
Last week, the MVT revealed it had saved a couple of grassroots venues in south-east England, by bringing them into public stewardship.
The first in that area and the second in the city were bought under the Own Our Venues scheme, which is supported by a national body and supporters who buy "stakes" in the venues.
