The artist has donated the complete sum of his £25,000 honor winnings to the Music Venues Trust, which functions to protect the UK's independent music venues.
The star was awarded the prize on 16 October as his new release People Watching was declared the top album of the previous year.
He has opted to hand the money over to the trust, in appreciation of the vital role local spots had in his beginning days.
"I would not have achieved my current career if it wasn't for all the performances I did around the region, and elsewhere, when I was starting out," remarked Fender. "These venues are renowned, but they are struggling."
From early 2023 onward, at least 150 of these spaces have permanently closed – roughly 16% of the entire UK sector.
In the last year, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its attempts to help venues survive, by adding a modest fee to their admission fees, which goes to help local stages.
He also joined in, raising over £100k on his live tour to help thirty-eight small stages across the UK.
The money helped locations that were confronting imminent closure due to difficulties caused by water damage, fires and family tragedies, as well as licensing issues, legal disputes and noise complaints.
Other venues received financial assistance in modernizing amenities and gear that directly benefitted performers and concertgoers.
"The concept that revenue from shows in large arenas backs the independent spots, where it begins for performers like me, is just common sense," the star has said.
The musician is far from the only musician to donate his Mercury Prize funds to worthy causes.
When Pulp received the trophy in the year 1996 for their album Different Class, vocalist the singer stated that the group would contribute their winnings to the organization the charity.
That year, musician Ms Dynamite divided her prize among several organizations, such as the children's charity and a Sickle Cell organization.
"Additionally, I gave a thousand pounds to Highgate Newtown, to their classes, because I practiced gymnastics when I was growing up and they needed new equipment," Ms Dynamite explained to outlets.
Two years ago, the band gave their winnings to the community center that nurtured their band, in addition to other grassroots music organisations.
And the 1994 recipients they donated their award to a MS organization after a close contact was identified with the disease.
"The victory was sufficient," said artist Heather Small. "The cash was the cherry on top but we didn't require the bonus, because we had the honor. So our winning touched another person's life."
Last week, the MVT announced it had saved several local spots in the South East, by bringing them into community ownership.
The Joiners in that area and the second in the city were purchased under the Own Our Venues initiative, which is supported by a national body and supporters who purchase "ownership units" in the venues.
