The artist has handed over the complete sum of his £25,000 award cash to the trust for venues, which operates to protect the UK's small music venues.
The star was given the prize on mid-October as his new release People Watching was declared the best record of the past year.
Fender has opted to hand the money over to the Music Venues Trust, in appreciation of the crucial part local spots had in his initial steps.
"I personally couldn't be pursuing my current career if it wasn't for all the gigs I performed around the region, and elsewhere, when I was just getting going," said the artist. "These venues are renowned, but they are struggling."
Since the start of 2023, over 150 of these locations have shut down – about 16 percent of the entire UK sector.
Recently, top acts including the band Pulp, Coldplay, Katy Perry and Sheeran have all backed the trust in its efforts to support the industry, by applying a minor surcharge to their ticket costs, which goes to help smaller concert halls.
Fender also took part, generating in excess of £100,000 on his recent tour to help thirty-eight small stages across England, Scotland, and Wales.
The donation supported venues that were confronting potential shutdown due to issues caused by flooding, fire incidents and family tragedies, as well as licensing issues, legal disputes and noise complaints.
Other venues were granted monetary aid in improving infrastructure and gear that helped artists and audiences.
"The concept that money from performances in major spaces backs the smaller venues, where it begins for performers like me, is just logical," Fender has stated.
The musician is among several artists to give his Mercury Prize funds to good deeds.
Back when they earned the award in the mid-90s for their record their work, frontman Cocker declared that the act would donate their winnings to the non-profit the charity.
During 2002, rapper and singer Ms Dynamite divided her bounty across multiple organizations, like the children's charity and a Sickle Cell organization.
"And I donated a thousand pounds to the center, to their gymnastics program, because I trained in gymnastics when I was a child and they lacked updated gear," Ms Dynamite told a publication.
In recent years, Ezra Collective gave their funds to the local youth club that supported their group, alongside other independent music bodies.
And the 1994 recipients the group donated their award to a charity for MS after a acquaintance was diagnosed the illness.
"Receiving the award was sufficient," remarked artist Heather Small. "The money was the extra but we could do without the bonus, because we had the cake. So our winning affected another person's life."
In the past week, the MVT shared it had rescued two small stages in south-east England, by bringing them into community ownership.
The Joiners in Southampton and The Croft in Bristol were bought under the community ownership scheme, which is funded by a national body and music fans who purchase "stakes" in the venues.
