The star has handed over the complete sum of his £25k award winnings to the Music Venues Trust, which works to protect the Britain's small live music spots.
He was given the award on 16 October as his new release People Watching was chosen as the top album of the previous year.
He has decided to give the cash to the Music Venues Trust, in acknowledgment of the essential function small stages fulfilled in his initial steps.
"I personally wouldn't be doing my current career if it weren't for all the performances I performed around the area, and elsewhere, when I was beginning," remarked the artist. "These locations are iconic, but they are in difficulty."
From early 2023 onward, over 150 of these spaces have ceased operations – approximately one-sixth of the total UK scene.
In the last year, major artists including Pulp, the group Coldplay, Katy Perry and Sheeran have all backed the trust in its initiatives to keep the scene afloat, by adding a modest fee to their ticket prices, which supports independent venues.
Fender also joined in, collecting more than £100,000 on his recent tour to help 38 grassroots venues across England, Scotland, and Wales.
These funds helped spaces that were dealing with potential shutdown due to issues caused by water damage, fires and family tragedies, as well as licensing issues, court cases and noise complaints.
Some locations were granted funding support in upgrading facilities and technical equipment that positively impacted performers and audiences.
"The notion that revenue from concerts in major spaces backs the local stages, where it kicks off for musicians like me, is just sensible," Fender has stated.
Fender is not the first artist to contribute his Mercury Prize funds to charitable organizations.
In the band received the prize in the mid-90s for their album their work, vocalist the singer stated that the band would contribute their cash to the charity War Child.
That year, rapper and singer Ms Dynamite shared her bounty across a few organizations, such as the NSPCC and a charity for Sickle Cell.
"Additionally, I donated a thousand pounds to the center, to their gymnastics class, because I trained in gymnastics when I was growing up and they required better apparatus," she explained to outlets.
Two years ago, the band gave their winnings to the community center that developed their group, alongside other local music groups.
Additionally 1994 winners they gave their award to a charity for MS after a acquaintance was identified with the disease.
"Winning was ample," stated singer the singer. "The money was the cherry on top but we could do without the extra, because we had the cake. So our victory affected somebody else's life."
Last week, the trust shared it had saved a couple of grassroots venues in south-east England, by transferring them to local control.
The first in the city and The Croft in Bristol were purchased under the public acquisition scheme, which is supported by Arts Council England and enthusiasts who acquire "ownership units" in the venues.
