The artist has handed over the entirety of his twenty-five thousand pound award cash to the Music Venues Trust, which works to preserve the Britain's grassroots concert spaces.
The star was awarded the cheque on 16 October as his third album People Watching was chosen as the outstanding release of the last 12 months.
He has decided to hand the money over to the trust, in recognition of the vital role small stages had in his early career.
"I couldn't be pursuing my current career if it hadn't been for all the gigs I performed around the area, and further afield, when I was starting out," stated the artist. "These spaces are renowned, but they are in difficulty."
From early 2023 onward, more than 150 of these venues have permanently closed – approximately one-sixth of the entire UK sector.
In the last year, major artists like the band Pulp, Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its initiatives to support the industry, by including a modest fee to their ticket prices, which benefits local stages.
Fender also joined in, generating over £100k on his live tour to assist thirty-eight grassroots venues across England, Scotland, and Wales.
The money helped venues that were confronting possible closure due to challenges arising from flooding, fire incidents and personal losses, as well as licensing issues, conflicts and sound issues.
Other venues obtained monetary aid in modernizing facilities and sound and lighting systems that helped musicians and fans.
"The notion that funds from shows in major spaces backs the independent spots, where it begins for musicians like me, is just common sense," Fender has stated.
The musician is among several artists to donate his Mercury Prize funds to good deeds.
In they won the prize in the mid-90s for their release their work, frontman Jarvis Cocker announced that the band would donate their cash to the organization War Child.
During 2002, rapper and singer she divided her prize among multiple organizations, like the children's charity and a Sickle Cell charity.
"And I donated a thousand pounds to my local community centre, to their classes, because I practiced gymnastics when I was younger and they lacked updated gear," Ms Dynamite told outlets.
In recent years, the band contributed their prize money to the local youth club that nurtured their act, alongside other independent music bodies.
And 1994 winners they donated their prize to a multiple sclerosis charity after a close contact was identified with the condition.
"Receiving the award was quite enough," stated vocalist Heather Small. "The money was the extra but we didn't require the cherry, because we had the honor. So our success affected somebody else's life."
Recently, the MVT announced it had saved a couple of small stages in the South East, by bringing them into public stewardship.
One venue in Southampton and the second in Bristol were purchased under the public acquisition initiative, which is backed by the arts council and enthusiasts who acquire "shares" in the buildings.
