The artist has handed over the complete sum of his twenty-five thousand pound honor cash to the MVT, which works to preserve the Britain's independent music venues.
Fender was awarded the award on mid-October as his latest record the album was named the top album of the previous year.
Fender has decided to donate the funds to the Music Venues Trust, in appreciation of the vital role local spots had in his beginning days.
"As an artist would not have achieved this success if it weren't for all the shows I did around the area, and further afield, when I was just getting going," remarked Fender. "These venues are renowned, but they are facing challenges."
Beginning in 2023, more than 150 of these locations have shut down – roughly 16 percent of the total UK scene.
In the last year, major artists including Pulp, Coldplay, Katy Perry and Sheeran have all backed the trust in its efforts to help venues survive, by adding a modest fee to their admission fees, which benefits smaller concert halls.
Fender also took part, raising in excess of £100,000 on his live tour to assist 38 local spots across Britain.
These funds helped locations that were facing possible closure due to issues stemming from floods, fire incidents and personal losses, as well as regulatory hurdles, court cases and sound issues.
Other venues were granted funding support in upgrading amenities and gear that positively impacted performers and concertgoers.
"The notion that money from concerts in big venues helps 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 funds to worthy causes.
In they won the award in the year 1996 for their record Different Class, vocalist the singer declared that the act would donate their cash to the charity the charity.
That year, artist the artist divided her bounty among multiple organizations, including the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a grand to the center, to their gymnastics class, because I trained in gymnastics when I was younger and they lacked updated gear," she explained to outlets.
In recent years, they gave their funds to the community center that developed their act, as well as other local music groups.
Also winners that year they donated their prize to a charity for MS after a friend was found to have the illness.
"Winning was sufficient," remarked singer the singer. "The prize was the bonus but we could do without the extra, because we had the main prize. So our success touched the lives of others."
In the past week, the MVT announced it had saved a couple of small stages in south-east England, by bringing them into local control.
The first in the city and the second in Bristol were bought under the Own Our Venues scheme, which is supported by Arts Council England and enthusiasts who buy "stakes" in the properties.