The star has donated the full amount of his £25k honor cash to the trust for venues, which works to preserve the United Kingdom's small live music spots.
He was awarded the cheque on mid-October as his new release People Watching was named the outstanding release of the last 12 months.
Fender has decided to hand the money over to the Music Venues Trust, in appreciation of the vital role local spots had in his early career.
"I wouldn't be doing my current career if it wasn't for all the shows I performed around the region, and elsewhere, when I was starting out," said the artist. "These spaces are legendary, but they are in difficulty."
Beginning in 2023, more than 150 of these venues have shut down – approximately 16 percent of the whole industry in the UK.
Recently, major artists including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its efforts to help venues survive, by adding a small levy to their admission fees, which goes to help independent venues.
Fender also participated, collecting in excess of £100,000 on his recent tour to support 38 grassroots venues across the UK.
These funds supported spaces that were dealing with potential shutdown due to challenges arising from flooding, fire incidents and bereavements, as well as regulatory hurdles, conflicts and neighbor objections.
Additional spaces received funding support in modernizing amenities and sound and lighting systems that positively impacted artists and concertgoers.
"The concept that revenue from concerts in big venues supports the smaller venues, where it all starts for performers like me, is just sensible," the star has said.
Fender is among several artists to contribute his Mercury Prize winnings to worthy causes.
Back when the band won the prize in the year 1996 for their release the album, vocalist Jarvis Cocker announced that the act would donate their prize money to the non-profit War Child.
That year, rapper and singer the artist split her award between several good causes, including the children's charity and a Sickle Cell charity.
"And I gave a £1,000 to Highgate Newtown, to their classes, because I practiced gymnastics when I was growing up and they needed better apparatus," Ms Dynamite shared with a publication.
Two years ago, the band donated their prize money to the youth organization that nurtured their group, in addition to other local music groups.
And 1994 winners they contributed their prize to a multiple sclerosis charity after a acquaintance was diagnosed the illness.
"The victory was ample," remarked singer Heather Small. "The cash was the cherry on top but we didn't need the bonus, because we had the main prize. So our victory impacted somebody else's life."
In the past week, the trust revealed it had rescued a couple of local spots in south-east England, by bringing them into local control.
The Joiners in Southampton and the second in the city were purchased under the community ownership scheme, which is backed by a national body and music fans who purchase "stakes" in the properties.
