The artist has handed over the full amount of his £25,000 honor prize money to the MVT, which works to save the Britain's small live music spots.
The star was given the prize on 16 October as his third album People Watching was declared the best record of the past year.
The musician has opted to give the cash to the trust, in appreciation of the vital role local spots had in his initial steps.
"As an artist couldn't be pursuing what I am doing today if it wasn't for all the shows I played around the North East, and beyond, when I was beginning," said the artist. "These locations are iconic, but they are struggling."
Since the start of 2023, more than 150 of these venues have permanently closed – approximately one-sixth of the whole industry in the UK.
In the last year, major artists including Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its attempts to support the industry, by adding a modest fee to their ticket prices, which benefits smaller concert halls.
He also took part, collecting more than £100,000 on his recent tour to assist 38 grassroots venues across England, Scotland, and Wales.
The money supported locations that were dealing with possible closure due to challenges stemming from water damage, fire incidents and family tragedies, as well as licensing issues, court cases and neighbor objections.
Additional spaces were granted monetary aid in upgrading infrastructure and technical equipment that positively impacted artists and concertgoers.
"The concept that money from shows in big venues backs the independent spots, where it all starts for musicians like me, is just sensible," Fender has said.
He is far from the only musician to contribute his Mercury Prize winnings to charitable organizations.
When they earned the trophy in 1996 for their album Different Class, vocalist the singer declared that the group would give their prize money to the non-profit the charity.
During 2002, musician she split her bounty across several charities, such as the NSPCC and a Sickle Cell organization.
"Additionally, I contributed a £1,000 to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was younger and they required new equipment," Ms Dynamite told a publication.
Two years ago, the band donated their prize money to the local youth club that supported their band, in addition to other independent music bodies.
And 1994 winners M People gave their award to a multiple sclerosis charity after a friend was identified with the condition.
"The victory was quite enough," remarked singer the singer. "The cash was the bonus but we didn't need the bonus, because we had the main prize. So our success impacted another person's life."
In the past week, the trust shared it had rescued several small stages in south-east England, by transferring them to local control.
The Joiners in Southampton and The Croft in the city were bought under the public acquisition scheme, which is backed by Arts Council England and enthusiasts who buy "ownership units" in the buildings.
