The artist has handed over the full amount of his twenty-five thousand pound award cash to the Music Venues Trust, which works to save the Britain's small concert spaces.
He was awarded the prize on October 16 as his new release his work was declared the top album of the past year.
He has decided to donate the funds to the MVT, in acknowledgment of the essential function local spots fulfilled in his beginning days.
"I wouldn't be doing this success if it hadn't been for all the gigs I performed around the region, and further afield, when I was beginning," remarked Fender. "These spaces are legendary, but they are facing challenges."
Since the start of 2023, more than 150 of these locations have shut down – approximately one-sixth of the total UK scene.
Recently, well-known musicians like Pulp, the group Coldplay, Katy Perry and Sheeran have all backed the MVT in its initiatives to support the industry, by including a minor surcharge to their admission fees, which goes to help local stages.
Fender also joined in, collecting over £100k on his live tour to assist numerous local spots across the UK.
These funds assisted venues that were dealing with potential shutdown due to difficulties stemming from water damage, blazes and bereavements, as well as regulatory hurdles, court cases and noise complaints.
Some locations were granted monetary aid in improving amenities and technical equipment that helped musicians and fans.
"The notion that revenue from concerts in large arenas backs the local stages, where it all starts for musicians like me, is just common sense," Fender has said.
The musician is not the first artist to donate his Mercury Prize winnings to charitable organizations.
Back when they earned the award in the year 1996 for their release the album, frontman the singer announced that the band would donate their cash to the charity War Child.
That year, musician Ms Dynamite divided her award between several charities, such as the children's charity and a Sickle Cell charity.
"And I donated a grand to my local community centre, to their gymnastics program, because I did gymnastics when I was growing up and they lacked better apparatus," the artist told outlets.
In recent years, the band contributed their winnings to the local youth club that nurtured their act, as well as other local music groups.
Also the 1994 recipients the group gave their winnings to a multiple sclerosis charity after a acquaintance was diagnosed the disease.
"Receiving the award was quite enough," remarked artist the singer. "The cash was the bonus but we could do without the cherry, because we had the main prize. So our success affected the lives of others."
In the past week, the Music Venues Trust revealed it had rescued several local spots in the South East, by bringing them into local control.
The Joiners in Southampton and the other in Bristol were bought under the community ownership initiative, which is backed by a national body and enthusiasts who purchase "stakes" in the properties.
