The star has given the complete sum of his £25k award winnings to the MVT, which functions to protect the United Kingdom's independent live music spots.
Fender was awarded the award on October 16 as his new release his work was declared the top album of the previous year.
Fender has decided to donate the funds to the Music Venues Trust, in acknowledgment of the crucial part local spots played in his initial steps.
"I would not have achieved what I am doing today if it wasn't for all the gigs I played around the area, and further afield, when I was just getting going," stated Fender. "These locations are iconic, but they are struggling."
From early 2023 onward, over 150 of these locations have permanently closed – approximately one-sixth of the total UK scene.
Recently, major artists such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its efforts to support the industry, by adding a minor surcharge to their admission fees, which supports smaller concert halls.
He also took part, generating over £100k on his live tour to support thirty-eight small stages across the UK.
The money helped locations that were facing imminent closure due to challenges caused by floods, fire incidents and family tragedies, as well as permit problems, legal disputes and neighbor objections.
Other venues obtained monetary aid in upgrading amenities and technical equipment that helped musicians and concertgoers.
"The concept that money from performances in large arenas supports the local stages, where it kicks off for artists like me, is just common sense," the star has stated.
Fender is far from the only musician to donate his Mercury Prize funds to worthy causes.
Back when the band received the award in 1996 for their release Different Class, vocalist the singer declared that the act would donate their cash to the charity War Child.
During 2002, rapper and singer Ms Dynamite divided her prize among multiple good causes, such as the NSPCC and a Sickle Cell organization.
"And I gave a thousand pounds to my local community centre, to their gymnastics class, because I practiced gymnastics when I was younger and they lacked new equipment," Ms Dynamite shared with a publication.
Previously, the band gave their prize money to the youth organization that nurtured their group, alongside other grassroots music organisations.
And winners that year they donated their award to a MS organization after a friend was diagnosed the condition.
"The victory was quite enough," said artist Small. "The money was the bonus but we could do without the cherry, because we had the honor. So our success impacted another person's life."
Last week, the MVT revealed it had saved a couple of local spots in south-east England, by bringing them into community ownership.
One venue in the city and the second in that location were acquired under the community ownership scheme, which is funded by the arts council and music fans who acquire "shares" in the buildings.
