The star has handed over the full amount of his £25k award winnings to the MVT, which operates to protect the United Kingdom's small live music spots.
He was awarded the prize on October 16 as his new release People Watching was named the outstanding release of the last 12 months.
Fender has chosen to give the cash to the trust, in recognition of the vital role small stages fulfilled in his early career.
"As an artist couldn't be pursuing my current career if it weren't for all the gigs I performed around the area, and beyond, when I was beginning," stated Fender. "These spaces are renowned, but they are struggling."
From early 2023 onward, at least 150 of these venues have shut down – approximately 16 percent of the total UK scene.
Recently, well-known musicians such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its initiatives to help venues survive, by adding a small levy to their ticket prices, which goes to help independent venues.
He also participated, generating over £100k on his recent tour to assist numerous grassroots venues across Britain.
The donation supported spaces that were confronting potential shutdown due to difficulties caused by water damage, fires and bereavements, as well as regulatory hurdles, legal disputes and neighbor objections.
Other venues were granted funding support in modernizing infrastructure and sound and lighting systems that helped musicians and fans.
"The concept that revenue from shows in big venues helps the independent spots, where it begins for musicians like me, is just sensible," Fender has commented.
The musician is far from the only musician to donate his Mercury Prize funds to good deeds.
Back when Pulp earned the prize in the year 1996 for their record the album, lead singer Cocker announced that the act would give their prize money to the charity War Child.
During 2002, artist she shared her prize across a few good causes, such as the NSPCC and a Sickle Cell organization.
"Additionally, I contributed a thousand pounds to Highgate Newtown, to their classes, because I trained in gymnastics when I was growing up and they lacked updated gear," the artist shared with the media.
In recent years, the band contributed their prize money to the youth organization that nurtured their band, in addition to other grassroots music organisations.
Additionally winners that year they gave their winnings to a multiple sclerosis charity after a friend was diagnosed the condition.
"Winning was quite enough," said singer the singer. "The money was the bonus but we could do without the extra, because we had the main prize. So our success affected the lives of others."
Last week, the trust shared it had rescued several small stages in that region, by transferring them to community ownership.
One venue in Southampton and the other in the city were bought under the Own Our Venues initiative, which is funded by Arts Council England and enthusiasts who buy "stakes" in the properties.
