The star has given the full amount of his £25k award cash to the Music Venues Trust, which operates to preserve the UK's independent concert spaces.
Fender was given the award on mid-October as his new release the album was named the top album of the last 12 months.
He has chosen to hand the money over to the Music Venues Trust, in appreciation of the vital role local spots played in his beginning days.
"As an artist couldn't be pursuing what I am doing today if it wasn't for all the shows I did around the region, and elsewhere, when I was just getting going," stated Fender. "These locations are legendary, but they are facing challenges."
Beginning in 2023, at least 150 of these venues have shut down – roughly 16 percent of the total UK scene.
Recently, well-known musicians like Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its attempts to help venues survive, by including a modest fee to their admission fees, which supports smaller concert halls.
He also joined in, raising over £100k on his 2024 arena tour to support numerous small stages across England, Scotland, and Wales.
The donation assisted spaces that were confronting potential shutdown due to challenges caused by flooding, fire incidents and personal losses, as well as licensing issues, legal disputes and neighbor objections.
Other venues received financial assistance in upgrading amenities and technical equipment that directly benefitted musicians and audiences.
"The concept that funds from performances in large arenas helps the independent spots, where it begins for performers like me, is just sensible," Fender has commented.
Fender is not the first artist to contribute his Mercury Prize winnings to charitable organizations.
In Pulp won the trophy in the mid-90s for their album the album, frontman the singer stated that the band would donate their winnings to the charity the charity.
In 2002, musician the artist split her award between a few good causes, like the NSPCC and a Sickle Cell organization.
"And I donated a thousand pounds to my local community centre, to their classes, because I practiced gymnastics when I was a child and they needed updated gear," the artist shared with a publication.
Previously, the band gave their funds to the community center that developed their band, as well as other local music groups.
And 1994 winners the group gave their winnings to a MS organization after a acquaintance was identified with the condition.
"Winning was sufficient," stated artist Heather Small. "The prize was the extra but we didn't need the bonus, because we had the main prize. So our success affected another person's life."
Last week, the MVT shared it had protected a couple of grassroots venues in that region, by placing them under community ownership.
The first in Southampton and The Croft in the city were bought under the community ownership program, which is backed by the arts council and supporters who buy "stakes" in the buildings.