The star has donated the full amount of his twenty-five thousand pound award prize money to the trust for venues, which works to preserve the UK's independent live music spots.
The star was presented with the cheque on mid-October as his latest record People Watching was named the best record of the previous year.
He has decided to hand the money over to the trust, in acknowledgment of the vital role local spots had in his early career.
"I would not have achieved what I am doing today if it weren't for all the gigs I performed around the North East, and elsewhere, when I was starting out," said Fender. "These spaces are renowned, but they are in difficulty."
Since the start of 2023, over 150 of these venues have permanently closed – about 16% of the total UK scene.
Over the past year, top acts including the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its efforts to help venues survive, by including a minor surcharge to their ticket costs, which benefits local stages.
Fender also took part, generating in excess of £100,000 on his live tour to support 38 small stages across Britain.
The donation helped spaces that were facing possible closure due to challenges stemming from flooding, fire incidents and bereavements, as well as licensing issues, court cases and neighbor objections.
Some locations were granted funding support in upgrading facilities and gear that helped musicians and fans.
"The notion that funds from shows in major spaces backs the independent spots, where it begins for musicians like me, is just sensible," Fender has commented.
Fender is not the first artist to donate his Mercury Prize winnings to good deeds.
When they won the award in the mid-90s for their record Different Class, lead singer Cocker announced that the band would donate their cash to the organization the charity.
In 2002, rapper and singer she shared her prize among several good causes, like the NSPCC and a Sickle Cell organization.
"I also donated a thousand pounds to the center, to their gymnastics class, because I practiced gymnastics when I was younger and they required better apparatus," Ms Dynamite shared with a publication.
Previously, the band contributed their prize money to the youth organization that developed their act, alongside other independent music bodies.
And 1994 winners M People contributed their winnings to a multiple sclerosis charity after a friend was identified with the disease.
"Receiving the award was sufficient," said artist the singer. "The money was the extra but we didn't need the cherry, because we had the cake. So our success impacted another person's life."
In the past week, the trust announced it had protected two small stages in south-east England, by transferring them to public stewardship.
The Joiners in that area and The Croft in Bristol were acquired under the public acquisition scheme, which is supported by Arts Council England and enthusiasts who acquire "shares" in the venues.