The star has given the complete sum of his £25k honor prize money to the trust for venues, which works to protect the United Kingdom's independent music venues.
Fender was awarded the cheque on mid-October as his third album his work was chosen as the outstanding release of the past year.
He has opted to hand the money over to the Music Venues Trust, in recognition of the crucial part small stages had in his early career.
"I wouldn't be doing this success if it hadn't been for all the shows I performed around the region, and beyond, when I was beginning," stated the artist. "These spaces are iconic, but they are facing challenges."
Since the start of 2023, over 150 of these locations have permanently closed – approximately 16 percent of the total UK scene.
Over the past year, top acts such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its efforts to help venues survive, by applying a minor surcharge to their ticket prices, which goes to help local stages.
Fender also participated, raising over £100k on his recent tour to support 38 small stages across England, Scotland, and Wales.
The donation assisted venues that were dealing with imminent closure due to challenges caused by flooding, fires and personal losses, as well as licensing issues, conflicts and neighbor objections.
Other venues received monetary aid in upgrading amenities and gear that helped musicians and audiences.
"The concept that funds from performances in major spaces supports the independent spots, where it kicks off for artists like me, is just common sense," Fender has said.
The musician is not the first artist to contribute his Mercury Prize winnings to worthy causes.
Back when the band won the trophy in the mid-90s for their record Different Class, lead singer the singer announced that the act would donate their winnings to the organization War Child.
In 2002, rapper and singer she split her prize across a few charities, such as the NSPCC and a Sickle Cell organization.
"Additionally, I gave a thousand pounds to the center, to their classes, because I practiced gymnastics when I was younger and they needed new equipment," the artist told outlets.
In recent years, Ezra Collective donated their funds to the community center that supported their group, in addition to other independent music bodies.
And 1994 winners M People contributed their winnings to a charity for MS after a close contact was diagnosed the disease.
"Winning was quite enough," stated singer Small. "The cash was the bonus but we could do without the bonus, because we had the honor. So our winning affected another person's life."
Recently, the MVT shared it had saved a couple of grassroots venues in that region, by bringing them into local control.
The first in the city and The Croft in Bristol were purchased under the Own Our Venues initiative, which is backed by Arts Council England and enthusiasts who purchase "shares" in the venues.