The star has handed over the full amount of his twenty-five thousand pound honor winnings to the Music Venues Trust, which operates to protect the United Kingdom's small concert spaces.
Fender was awarded the award on 16 October as his latest record People Watching was named the outstanding release of the last 12 months.
He has decided to give the cash to the trust, in appreciation of the crucial part grassroots venues had in his beginning days.
"I personally couldn't be pursuing what I am doing today if it weren't for all the performances I did around the region, and further afield, when I was beginning," remarked Fender. "These venues are iconic, but they are struggling."
Beginning in 2023, over 150 of these locations have permanently closed – about 16 percent of the entire UK sector.
Recently, top acts including the band Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all supported the Music Venues Trust in its initiatives to help venues survive, by applying a minor surcharge to their ticket prices, which benefits independent venues.
He also took part, generating over £100k on his recent tour to support 38 local spots across England, Scotland, and Wales.
These funds assisted venues that were confronting imminent closure due to issues caused by flooding, fire incidents and bereavements, as well as regulatory hurdles, conflicts and noise complaints.
Some locations were granted funding support in upgrading infrastructure and technical equipment that directly benefitted performers and concertgoers.
"The idea that funds from performances in major spaces helps the local stages, where it kicks off for musicians like me, is just common sense," Fender has said.
Fender is not the first artist to donate his Mercury Prize prize money to good deeds.
Back when Pulp received the prize in the mid-90s for their release the album, lead singer Jarvis Cocker stated that the act would give their prize money to the organization the charity.
During 2002, musician the artist split her award across several organizations, like the NSPCC and a charity for Sickle Cell.
"And I contributed a thousand pounds to Highgate Newtown, to their classes, because I practiced gymnastics when I was younger and they lacked new equipment," Ms Dynamite shared with a publication.
In recent years, the band contributed their funds to the youth organization that developed their band, in addition to other independent music bodies.
And the 1994 recipients the group gave their winnings to a multiple sclerosis charity after a friend was found to have the condition.
"The victory was quite enough," remarked singer Small. "The money was the cherry on top but we could do without the cherry, because we had the cake. So our success affected the lives of others."
Last week, the Music Venues Trust revealed it had saved a couple of local spots in the South East, by placing them under community ownership.
One venue in that area and The Croft in that location were acquired under the public acquisition scheme, which is funded by the arts council and music fans who purchase "stakes" in the buildings.
