The star has given the full amount of his twenty-five thousand pound honor cash to the trust for venues, which operates to preserve the United Kingdom's grassroots concert spaces.
Fender was given the award on mid-October as his latest record People Watching was named the outstanding release of the past year.
Fender has opted to donate the funds to the MVT, in appreciation of the vital role local spots played in his initial steps.
"I would not have achieved this success if it weren't for all the gigs I did around the North East, and further afield, when I was starting out," said Fender. "These venues are iconic, but they are struggling."
Since the start of 2023, at least 150 of these venues have ceased operations – about 16 percent of the whole industry in the UK.
In the last year, major artists including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its efforts to help venues survive, by adding a minor surcharge to their admission fees, which benefits local stages.
Fender also took part, generating over £100k on his live tour to support numerous grassroots venues across the UK.
The donation helped venues that were confronting imminent closure due to difficulties arising from flooding, blazes and bereavements, as well as permit problems, court cases and noise complaints.
Additional spaces received monetary aid in improving facilities and technical equipment that helped artists and concertgoers.
"The idea that revenue from shows in major spaces backs the local stages, where it all starts for musicians like me, is just common sense," the star has said.
Fender is among several artists to contribute his Mercury Prize winnings to good deeds.
Back when the band won the award in the mid-90s for their record Different Class, vocalist Cocker declared that the group would contribute their prize money to the organization War Child.
In 2002, rapper and singer the artist split her award across a few organizations, including the NSPCC and a Sickle Cell charity.
"I also contributed a £1,000 to my local community centre, to their gymnastics class, because I practiced gymnastics when I was younger and they lacked new equipment," the artist explained to outlets.
Previously, Ezra Collective contributed their funds to the community center that supported their act, as well as other local music groups.
Also 1994 winners M People contributed their winnings to a charity for MS after a friend was identified with the disease.
"Receiving the award was quite enough," said artist the singer. "The prize was the bonus but we didn't need the cherry, because we had the cake. So our winning impacted the lives of others."
Last week, the MVT announced it had protected several grassroots venues in that region, by transferring them to public stewardship.
One venue in that area and the other in that location were purchased under the public acquisition scheme, which is funded by a national body and music fans who acquire "shares" in the buildings.
