The star has handed over the full amount of his £25,000 honor cash to the MVT, which works to preserve the UK's small music venues.
Fender was awarded the award on 16 October as his third album the album was named the top album of the previous year.
The musician has chosen to give the cash to the MVT, in appreciation of the crucial part grassroots venues fulfilled in his beginning days.
"As an artist wouldn't be doing what I am doing today if it hadn't been for all the performances I played around the North East, and elsewhere, when I was beginning," stated the artist. "These spaces are renowned, but they are struggling."
Since the start of 2023, over 150 of these spaces have shut down – roughly 16% of the whole industry in the UK.
Recently, top acts including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its attempts to support the industry, by including a small levy to their ticket prices, which benefits independent venues.
He also participated, collecting more than £100,000 on his 2024 arena tour to assist 38 local spots across the UK.
The money supported locations that were confronting possible closure due to difficulties arising from flooding, fire incidents and bereavements, as well as licensing issues, legal disputes and sound issues.
Some locations obtained funding support in upgrading infrastructure and sound and lighting systems that helped performers and concertgoers.
"The idea that money from performances in big venues helps the local stages, where it all starts for performers like me, is just logical," Fender has stated.
He is among several artists to contribute his Mercury Prize winnings to good deeds.
Back when the band won the trophy in the mid-90s for their release their work, lead singer Cocker stated that the act would give their cash to the charity the charity.
In 2002, artist the artist split her bounty among multiple charities, like the NSPCC and a Sickle Cell organization.
"I also donated a thousand pounds to the center, to their gymnastics class, because I practiced gymnastics when I was younger and they needed new equipment," she shared with outlets.
Two years ago, they gave their funds to the community center that developed their band, in addition to other grassroots music organisations.
Also the 1994 recipients they gave their winnings to a charity for MS after a friend was diagnosed the illness.
"Winning was ample," stated singer Heather Small. "The money was the bonus but we didn't need the cherry, because we had the main prize. So our victory impacted another person's life."
In the past week, the trust announced it had protected several grassroots venues in south-east England, by bringing them into community ownership.
The Joiners in Southampton and The Croft in Bristol were acquired under the Own Our Venues program, which is supported by the arts council and music fans who buy "shares" in the venues.