The artist has given the full amount of his £25,000 honor cash to the MVT, which operates to preserve the Britain's independent concert spaces.
He was awarded the prize on mid-October as his third album his work was chosen as the outstanding release of the previous year.
Fender has decided to donate the funds to the MVT, in recognition of the crucial part small stages fulfilled in his beginning days.
"I personally wouldn't be doing what I am doing today if it hadn't been for all the gigs I played around the North East, and elsewhere, when I was beginning," stated Fender. "These locations are renowned, but they are facing challenges."
From early 2023 onward, at least 150 of these spaces have permanently closed – approximately 16% of the entire UK sector.
Recently, well-known musicians like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its attempts to help venues survive, by applying a modest fee to their ticket costs, which supports independent venues.
Fender also took part, raising more than £100,000 on his recent tour to help numerous local spots across England, Scotland, and Wales.
These funds assisted venues that were confronting potential shutdown due to challenges arising from flooding, fires and family tragedies, as well as permit problems, legal disputes and noise complaints.
Some locations received monetary aid in upgrading facilities and sound and lighting systems that directly benefitted musicians and fans.
"The idea that funds from shows in large arenas backs the smaller venues, where it begins for musicians like me, is just logical," Fender has commented.
He is among several artists to give his Mercury Prize prize money to worthy causes.
Back when the band won the award in 1996 for their record the album, lead singer Jarvis Cocker announced that the act would contribute their cash to the charity War Child.
During 2002, musician the artist divided her bounty among multiple charities, including the NSPCC and a charity for Sickle Cell.
"And I donated a £1,000 to Highgate Newtown, to their gymnastics program, because I did gymnastics when I was younger and they needed better apparatus," the artist shared with the media.
Previously, Ezra Collective donated their winnings to the youth organization that nurtured their band, as well as other independent music bodies.
And 1994 winners M People gave their winnings to a charity for MS after a close contact was found to have the condition.
"Receiving the award was ample," stated vocalist Heather Small. "The cash was the extra but we could do without the cherry, because we had the main prize. So our winning affected somebody else's life."
Last week, the Music Venues Trust shared it had rescued several local spots in south-east England, by placing them under community ownership.
One venue in the city and the second in that location were purchased under the community ownership scheme, which is funded by Arts Council England and music fans who buy "shares" in the properties.