The artist has given the entirety of his £25,000 award winnings to the MVT, which operates to save the Britain's small concert spaces.
The star was given the prize on mid-October as his latest record People Watching was named the outstanding release of the last 12 months.
Fender has chosen to hand the money over to the Music Venues Trust, in appreciation of the vital role small stages had in his beginning days.
"I personally couldn't be pursuing my current career if it hadn't been for all the performances I performed around the area, and beyond, when I was just getting going," remarked Fender. "These venues are legendary, but they are in difficulty."
Beginning in 2023, at least 150 of these venues have ceased operations – roughly 16% of the entire UK sector.
Over the past year, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its attempts to support the industry, by including a small levy to their ticket costs, which supports local stages.
He also joined in, collecting in excess of £100,000 on his recent tour to help thirty-eight grassroots venues across England, Scotland, and Wales.
The donation helped spaces that were confronting imminent closure due to challenges stemming from water damage, fire incidents and bereavements, as well as permit problems, court cases and noise complaints.
Some locations obtained financial assistance in modernizing facilities and sound and lighting systems that positively impacted performers and fans.
"The notion that funds from performances in major spaces helps the independent spots, where it all starts for musicians like me, is just logical," Fender has said.
Fender is not the first artist to contribute his Mercury Prize funds to charitable organizations.
In the band won the prize in the mid-90s for their release the album, lead singer Cocker declared that the act would donate their winnings to the charity War Child.
In 2002, rapper and singer the artist split her award between multiple charities, such as the NSPCC and a Sickle Cell charity.
"Additionally, I donated a thousand pounds to the center, to their gymnastics program, because I did gymnastics when I was younger and they needed updated gear," she explained to outlets.
In recent years, Ezra Collective donated their prize money to the youth organization that nurtured their act, in addition to other local music groups.
Additionally the 1994 recipients they donated their prize to a charity for MS after a close contact was found to have the disease.
"Winning was quite enough," stated artist the singer. "The cash was the cherry on top but we didn't require the bonus, because we had the honor. So our success affected somebody else's life."
Recently, the MVT announced it had saved two small stages in south-east England, by transferring them to local control.
The Joiners in the city and The Croft in the city were acquired under the community ownership program, which is backed by the arts council and enthusiasts who buy "stakes" in the venues.
