The artist has given the complete sum of his £25k honor winnings to the MVT, which operates to protect the United Kingdom's small live music spots.
The star was given the prize on 16 October as his third album People Watching was declared the top album of the last 12 months.
The musician has opted to donate the funds to the Music Venues Trust, in appreciation of the essential function local spots played in his beginning days.
"I couldn't be pursuing what I am doing today if it hadn't been for all the performances I performed around the area, and beyond, when I was starting out," remarked Fender. "These spaces are iconic, but they are struggling."
Since the start of 2023, over 150 of these venues have ceased operations – roughly 16 percent of the whole industry in the UK.
Over the past year, major artists including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the trust in its attempts to help venues survive, by adding a minor surcharge to their ticket costs, which benefits independent venues.
He also joined in, raising over £100k on his recent tour to assist thirty-eight small stages across England, Scotland, and Wales.
The money assisted venues that were confronting potential shutdown due to issues stemming from floods, fire incidents and bereavements, as well as regulatory hurdles, conflicts and noise complaints.
Some locations received funding support in improving facilities and technical equipment that directly benefitted musicians and concertgoers.
"The concept that money from shows in big venues helps the local stages, where it begins for musicians like me, is just logical," Fender has stated.
The musician is far from the only musician to give his Mercury Prize prize money to charitable organizations.
In Pulp won the award in the year 1996 for their record Different Class, lead singer Cocker stated that the act would contribute their winnings to the charity War Child.
In 2002, artist she shared her award among a few charities, including the children's charity and a charity for Sickle Cell.
"And I gave a thousand pounds to Highgate Newtown, to their gymnastics program, because I did gymnastics when I was growing up and they needed updated gear," Ms Dynamite explained to a publication.
Previously, they contributed their prize money to the community center that nurtured their act, in addition to other independent music bodies.
Additionally the 1994 recipients M People contributed their winnings to a multiple sclerosis charity after a friend was found to have the disease.
"Winning was sufficient," stated vocalist Heather Small. "The prize was the cherry on top but we could do without the bonus, because we had the cake. So our winning affected the lives of others."
Last week, the trust announced it had saved two local spots in south-east England, by placing them under public stewardship.
One venue in the city and the other in the city were acquired under the public acquisition initiative, which is funded by Arts Council England and enthusiasts who buy "shares" in the properties.