The star has given the full amount of his £25k award winnings to the Music Venues Trust, which operates to save the United Kingdom's small music venues.
The star was awarded the award on October 16 as his latest record his work was declared the best record of the past year.
Fender has opted to give the cash to the MVT, in recognition of the vital role local spots had in his early career.
"I personally wouldn't be doing my current career if it weren't for all the performances I did around the area, and elsewhere, when I was starting out," stated Fender. "These locations are renowned, but they are in difficulty."
Since the start of 2023, over 150 of these venues have ceased operations – approximately 16 percent of the whole industry in the UK.
Recently, major artists like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its initiatives to keep the scene afloat, by adding a minor surcharge to their ticket prices, which goes to help smaller concert halls.
He also joined in, generating over £100k on his recent tour to assist numerous grassroots venues across Britain.
The donation supported locations that were facing possible closure due to challenges caused by water damage, fire incidents and family tragedies, as well as permit problems, legal disputes and neighbor objections.
Additional spaces received financial assistance in improving infrastructure and sound and lighting systems that directly benefitted performers and audiences.
"The idea that funds from shows in big venues helps the local stages, where it all starts for artists like me, is just common sense," Fender has said.
He is not the first artist to donate his Mercury Prize winnings to worthy causes.
In they received the trophy in the mid-90s for their record their work, lead singer the singer stated that the act would donate their cash to the organization the charity.
In 2002, musician Ms Dynamite divided her bounty between multiple good causes, such as the children's charity and a Sickle Cell organization.
"And I donated a thousand pounds to Highgate Newtown, to their classes, because I trained in gymnastics when I was growing up and they lacked better apparatus," Ms Dynamite shared with a publication.
In recent years, Ezra Collective contributed their prize money to the community center that developed their band, as well as other grassroots music organisations.
And winners that year the group gave their award to a multiple sclerosis charity after a acquaintance was found to have the disease.
"Winning was ample," stated singer the singer. "The money was the cherry on top but we could do without the cherry, because we had the honor. So our success affected somebody else's life."
In the past week, the MVT revealed it had rescued two small stages in that region, by transferring them to local control.
The Joiners in Southampton and the second in Bristol were purchased under the public acquisition initiative, which is backed by the arts council and enthusiasts who buy "shares" in the venues.
