The star has handed over the entirety of his £25k award cash to the Music Venues Trust, which functions to save the Britain's grassroots concert spaces.
He was awarded the award on October 16 as his latest record People Watching was named the outstanding release of the last 12 months.
The musician has chosen to donate the funds to the Music Venues Trust, in recognition of the crucial part small stages had in his beginning days.
"As an artist would not have achieved my current career if it hadn't been for all the performances I performed around the area, and beyond, when I was starting out," remarked Fender. "These venues are iconic, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have permanently closed – approximately one-sixth of the whole industry in the UK.
Over the past year, major artists like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its attempts to help venues survive, by including a small levy to their ticket prices, which supports smaller concert halls.
Fender also took part, generating over £100k on his recent tour to help 38 small stages across Britain.
These funds assisted spaces that were dealing with potential shutdown due to issues arising from flooding, blazes and bereavements, as well as permit problems, legal disputes and sound issues.
Other venues received monetary aid in modernizing amenities and technical equipment that directly benefitted performers and audiences.
"The idea that revenue from shows in major spaces supports the local stages, where it begins for musicians like me, is just logical," Fender has said.
He is among several artists to give his Mercury Prize funds to good deeds.
Back when the band earned the trophy in the year 1996 for their album Different Class, vocalist Jarvis Cocker stated that the band would give their prize money to the organization War Child.
In 2002, rapper and singer she shared her bounty among multiple good causes, such as the children's charity and a Sickle Cell organization.
"Additionally, I donated a grand to the center, to their gymnastics class, because I did gymnastics when I was growing up and they required updated gear," she shared with the media.
In recent years, they contributed their funds to the community center that nurtured their act, in addition to other grassroots music organisations.
And the 1994 recipients the group gave their winnings to a charity for MS after a close contact was identified with the illness.
"Receiving the award was sufficient," remarked vocalist the singer. "The money was the extra but we didn't require the bonus, because we had the honor. So our victory impacted the lives of others."
In the past week, the Music Venues Trust revealed it had rescued two small stages in the South East, by placing them under local control.
The Joiners in that area and The Croft in Bristol were bought under the Own Our Venues initiative, which is supported by Arts Council England and enthusiasts who acquire "stakes" in the buildings.
