The star has donated the entirety of his £25,000 honor cash to the MVT, which works to protect the United Kingdom's grassroots concert spaces.
He was presented with the award on 16 October as his third album People Watching was named the outstanding release of the past year.
He has decided to give the cash to the Music Venues Trust, in appreciation of the vital role grassroots venues fulfilled in his initial steps.
"I personally would not have achieved this success if it weren't for all the shows I performed around the area, and elsewhere, when I was beginning," said Fender. "These venues are iconic, but they are struggling."
From early 2023 onward, at least 150 of these venues have shut down – approximately 16 percent of the whole industry in the UK.
Over the past year, major artists like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its initiatives to keep the scene afloat, by including a modest fee to their ticket prices, which goes to help independent venues.
Fender also took part, raising in excess of £100,000 on his live tour to support numerous local spots across the UK.
These funds assisted venues that were dealing with imminent closure due to issues caused by water damage, fires and family tragedies, as well as permit problems, court cases and neighbor objections.
Some locations received monetary aid in modernizing infrastructure and gear that directly benefitted artists and concertgoers.
"The notion that revenue from concerts in large arenas supports the independent spots, where it kicks off for artists like me, is just sensible," the star has commented.
Fender is far from the only musician to contribute his Mercury Prize prize money to good deeds.
Back when they received the award in the mid-90s for their album the album, frontman the singer stated that the band would donate their prize money to the organization the charity.
That year, rapper and singer the artist shared her award between a few organizations, including the NSPCC and a charity for Sickle Cell.
"And I contributed a grand to my local community centre, to their gymnastics class, because I did gymnastics when I was a child and they lacked better apparatus," Ms Dynamite explained to a publication.
Two years ago, Ezra Collective donated their prize money to the community center that developed their band, alongside other grassroots music organisations.
And winners that year M People donated their prize to a charity for MS after a acquaintance was identified with the illness.
"Winning was ample," remarked artist the singer. "The prize was the cherry on top but we didn't need the extra, because we had the main prize. So our winning affected another person's life."
Last week, the Music Venues Trust announced it had rescued a couple of small stages in that region, by transferring them to local control.
One venue in that area and the other in Bristol were bought under the Own Our Venues initiative, which is supported by a national body and supporters who buy "ownership units" in the buildings.
