The star has given the complete sum of his £25k honor winnings to the Music Venues Trust, which functions to protect the UK's small music venues.
The star was presented with the cheque on 16 October as his latest record his work was named the outstanding release of the previous year.
Fender has decided to donate the funds to the MVT, in recognition of the crucial part local spots had in his initial steps.
"As an artist wouldn't be doing what I am doing today if it wasn't for all the shows I played around the region, and beyond, when I was just getting going," said Fender. "These locations are legendary, but they are in difficulty."
Since the start of 2023, more than 150 of these locations have ceased operations – approximately 16% of the total UK scene.
In the last year, major artists including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its attempts to support the industry, by including a modest fee to their admission fees, which goes to help local stages.
Fender also joined in, raising more than £100,000 on his recent tour to assist numerous grassroots venues across the UK.
The donation helped spaces that were dealing with potential shutdown due to issues stemming from floods, fire incidents and family tragedies, as well as licensing issues, legal disputes and sound issues.
Some locations obtained financial assistance in modernizing facilities and gear that positively impacted performers and audiences.
"The concept that funds from concerts in major spaces helps the smaller venues, where it all starts for musicians like me, is just logical," Fender has commented.
Fender is far from the only musician to contribute his Mercury Prize funds to good deeds.
Back when they earned the award in the mid-90s for their record the album, frontman Cocker declared that the group would donate their prize money to the organization the charity.
During 2002, rapper and singer the artist split her bounty between multiple good causes, like the NSPCC and a Sickle Cell charity.
"And I gave a grand to my local community centre, to their gymnastics class, because I practiced gymnastics when I was a child and they lacked better apparatus," the artist told outlets.
In recent years, Ezra Collective contributed their prize money to the community center that supported their act, alongside other independent music bodies.
And the 1994 recipients the group contributed their winnings to a MS organization after a acquaintance was diagnosed the disease.
"Receiving the award was sufficient," stated singer Heather Small. "The prize was the bonus but we could do without the bonus, because we had the main prize. So our success touched somebody else's life."
Last week, the trust shared it had rescued several local spots in south-east England, by transferring them to public stewardship.
The Joiners in Southampton and the second in the city were bought under the public acquisition program, which is funded by Arts Council England and enthusiasts who acquire "ownership units" in the properties.