The star has donated the entirety of his £25k award winnings to the trust for venues, which functions to protect the UK's grassroots concert spaces.
He was given the award on mid-October as his new release his work was chosen as the outstanding release of the last 12 months.
Fender has opted to hand the money over to the MVT, in recognition of the essential function local spots played in his early career.
"I personally would not have achieved what I am doing today if it hadn't been for all the gigs I did around the region, and elsewhere, when I was just getting going," stated the artist. "These venues are legendary, but they are facing challenges."
Beginning in 2023, over 150 of these locations have permanently closed – about 16% of the total UK scene.
Recently, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to help venues survive, by adding a small levy to their ticket costs, which supports smaller concert halls.
He also joined in, collecting more than £100,000 on his recent tour to assist thirty-eight small stages across Britain.
These funds supported venues that were dealing with possible closure due to difficulties caused by flooding, fires and bereavements, as well as permit problems, legal disputes and noise complaints.
Some locations were granted monetary aid in upgrading amenities and technical equipment that helped musicians and audiences.
"The concept that revenue from performances in major spaces backs the independent spots, where it begins for musicians like me, is just logical," Fender has said.
The musician is among several artists to donate his Mercury Prize prize money to charitable organizations.
When Pulp received the award in 1996 for their release their work, vocalist the singer declared that the act would donate their prize money to the organization the charity.
That year, rapper and singer the artist shared her bounty among several charities, like the children's charity and a Sickle Cell organization.
"Additionally, I donated a £1,000 to the center, to their gymnastics class, because I practiced gymnastics when I was a child and they lacked updated gear," she shared with a publication.
In recent years, Ezra Collective donated their prize money to the local youth club that developed their band, in addition to other independent music bodies.
And 1994 winners M People contributed their winnings to a MS organization after a acquaintance was found to have the condition.
"The victory was sufficient," stated artist Small. "The prize was the bonus but we didn't require the extra, because we had the main prize. So our success touched the lives of others."
In the past week, the MVT announced it had rescued two grassroots venues in that region, by transferring them to community ownership.
One venue in that area and the other in Bristol were bought under the community ownership program, which is funded by a national body and supporters who purchase "shares" in the buildings.
