The artist has handed over the complete sum of his £25k award prize money to the Music Venues Trust, which works to protect the United Kingdom's independent music venues.
Fender was given the prize on 16 October as his third album his work was declared the best record of the past year.
Fender has decided to give the cash to the trust, in recognition of the crucial part small stages played in his beginning days.
"I would not have achieved this success if it wasn't for all the performances I played around the region, and further afield, when I was starting out," remarked the artist. "These spaces are iconic, but they are struggling."
Since the start of 2023, more than 150 of these spaces have permanently closed – about 16 percent of the total UK scene.
Over the past year, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its efforts to help venues survive, by applying a modest fee to their ticket prices, which supports smaller concert halls.
He also participated, generating more than £100,000 on his live tour to support 38 grassroots venues across the UK.
The money helped locations that were dealing with potential shutdown due to challenges caused by water damage, blazes and personal losses, as well as licensing issues, conflicts and neighbor objections.
Additional spaces received financial assistance in modernizing facilities and gear that positively impacted performers and fans.
"The idea that funds from shows in large arenas helps the local stages, where it begins for performers like me, is just common sense," Fender has commented.
The musician is not the first artist to donate his Mercury Prize funds to good deeds.
In Pulp earned the trophy in 1996 for their album Different Class, lead singer Jarvis Cocker stated that the act would contribute their winnings to the charity War Child.
That year, rapper and singer she divided her bounty across multiple charities, including the children's charity and a Sickle Cell organization.
"Additionally, I gave a grand to my local community centre, to their gymnastics program, because I did gymnastics when I was a child and they required new equipment," Ms Dynamite explained to a publication.
Two years ago, they gave their winnings to the community center that nurtured their band, alongside other independent music bodies.
Additionally 1994 winners they gave their award to a MS organization after a acquaintance was identified with the condition.
"Winning was quite enough," remarked vocalist Small. "The money was the bonus but we didn't require the bonus, because we had the main prize. So our winning affected another person's life."
Last week, the trust announced it had rescued two grassroots venues in south-east England, by transferring them to local control.
The Joiners in that area and the second in that location were bought under the community ownership scheme, which is funded by Arts Council England and supporters who buy "ownership units" in the properties.