The artist has handed over the entirety of his £25k honor winnings to the Music Venues Trust, which functions to protect the UK's small live music spots.
Fender was awarded the prize on 16 October as his latest record People Watching was chosen as the best record of the previous year.
He has opted to give the cash to the Music Venues Trust, in appreciation of the essential function grassroots venues fulfilled in his early career.
"I personally couldn't be pursuing my current career if it wasn't for all the performances I performed around the region, and further afield, when I was starting out," remarked Fender. "These locations are iconic, but they are struggling."
Since the start of 2023, over 150 of these spaces have permanently closed – approximately 16% of the entire UK sector.
Over the past year, well-known musicians such as Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to help venues survive, by applying a minor surcharge to their ticket prices, which benefits smaller concert halls.
Fender also joined in, raising in excess of £100,000 on his recent tour to assist 38 small stages across England, Scotland, and Wales.
These funds helped locations that were facing possible closure due to issues caused by floods, blazes and bereavements, as well as licensing issues, conflicts and noise complaints.
Some locations received financial assistance in upgrading facilities and sound and lighting systems that positively impacted performers and concertgoers.
"The concept that money from concerts in large arenas backs the local stages, where it begins for performers like me, is just sensible," the star has commented.
The musician is among several artists to donate his Mercury Prize winnings to charitable organizations.
In Pulp received the prize in the year 1996 for their release their work, vocalist Cocker announced that the band would donate their prize money to the charity War Child.
During 2002, musician she divided her award across multiple good causes, including the NSPCC and a charity for Sickle Cell.
"I also donated a thousand pounds to the center, to their classes, because I trained in gymnastics when I was younger and they needed new equipment," the artist told a publication.
In recent years, the band gave their funds to the local youth club that nurtured their act, as well as other independent music bodies.
Additionally 1994 winners M People gave their prize to a charity for MS after a friend was found to have the condition.
"Winning was sufficient," said singer Small. "The prize was the extra but we could do without the bonus, because we had the cake. So our success impacted another person's life."
Last week, the Music Venues Trust revealed it had rescued two local spots in the South East, by transferring them to local control.
The first in that area and the second in that location were acquired under the public acquisition program, which is backed by the arts council and enthusiasts who acquire "stakes" in the properties.
