The star has handed over the full amount of his twenty-five thousand pound honor winnings to the Music Venues Trust, which operates to preserve the United Kingdom's small live music spots.
Fender was presented with the cheque on 16 October as his third album People Watching was named the best record of the last 12 months.
Fender has chosen to donate the funds to the trust, in appreciation of the essential function local spots fulfilled in his early career.
"As an artist would not have achieved this success if it wasn't for all the shows I played around the region, and elsewhere, when I was just getting going," said Fender. "These spaces are renowned, but they are facing challenges."
Since the start of 2023, more than 150 of these venues have shut down – roughly 16% of the whole industry in the UK.
Recently, major artists like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its efforts to support the industry, by adding a minor surcharge to their ticket costs, which benefits independent venues.
Fender also took part, raising more than £100,000 on his recent tour to support 38 small stages across England, Scotland, and Wales.
These funds supported locations that were facing potential shutdown due to challenges stemming from floods, fires and bereavements, as well as regulatory hurdles, conflicts and noise complaints.
Some locations obtained financial assistance in modernizing amenities and technical equipment that positively impacted artists and concertgoers.
"The idea that funds from shows in large arenas helps the independent spots, where it all starts for musicians like me, is just logical," Fender has commented.
He is not the first artist to give his Mercury Prize funds to good deeds.
Back when they received the award in 1996 for their record Different Class, frontman the singer stated that the band would give their cash to the organization War Child.
In 2002, musician Ms Dynamite shared her prize across multiple good causes, like the NSPCC and a Sickle Cell organization.
"And I contributed a £1,000 to Highgate Newtown, to their classes, because I did gymnastics when I was a child and they needed new equipment," the artist shared with outlets.
Two years ago, Ezra Collective contributed their winnings to the local youth club that nurtured their act, as well as other grassroots music organisations.
Also the 1994 recipients the group contributed their award to a multiple sclerosis charity after a close contact was diagnosed the disease.
"Winning was sufficient," said singer Small. "The money was the bonus but we could do without the extra, because we had the main prize. So our success touched somebody else's life."
In the past week, the Music Venues Trust shared it had protected a couple of small stages in south-east England, by placing them under community ownership.
The Joiners in the city and the second in that location were acquired under the community ownership program, which is supported by Arts Council England and music fans who purchase "ownership units" in the properties.