The artist has handed over the entirety of his £25k award prize money to the MVT, which works to preserve the Britain's independent live music spots.
He was given the award on mid-October as his latest record his work was named the best record of the past year.
The musician has decided to give the cash to the MVT, in recognition of the crucial part grassroots venues played in his early career.
"I personally couldn't be pursuing this success if it hadn't been for all the performances I did around the North East, and further afield, when I was starting out," said Fender. "These locations are renowned, but they are in difficulty."
Beginning in 2023, more than 150 of these locations have permanently closed – about 16% of the entire UK sector.
Recently, top acts including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its initiatives to keep the scene afloat, by applying a small levy to their ticket prices, which benefits independent venues.
He also participated, generating over £100k on his recent tour to support 38 grassroots venues across the UK.
These funds assisted locations that were confronting imminent closure due to challenges arising from floods, blazes and family tragedies, as well as licensing issues, legal disputes and neighbor objections.
Additional spaces obtained financial assistance in modernizing amenities and technical equipment that directly benefitted artists and concertgoers.
"The concept that money from concerts in big venues helps the smaller venues, where it begins for musicians like me, is just common sense," Fender has said.
He is among several artists to give his Mercury Prize prize money to charitable organizations.
When they received the prize in the mid-90s for their album Different Class, vocalist Cocker stated that the band would give their prize money to the charity the charity.
That year, artist she divided her prize across multiple good causes, such as the NSPCC and a charity for Sickle Cell.
"I also donated a grand to the center, to their gymnastics class, because I practiced gymnastics when I was a child and they needed new equipment," Ms Dynamite shared with outlets.
In recent years, they gave their prize money to the local youth club that supported their group, as well as other grassroots music organisations.
And 1994 winners the group gave their winnings to a multiple sclerosis charity after a close contact was diagnosed the disease.
"Receiving the award was quite enough," stated singer Small. "The money was the bonus but we didn't need the cherry, because we had the main prize. So our winning impacted another person's life."
Last week, the MVT revealed it had saved two grassroots venues in the South East, by bringing them into local control.
The Joiners in Southampton and The Croft in that location were purchased under the community ownership scheme, which is backed by Arts Council England and enthusiasts who purchase "stakes" in the properties.
