The artist has given the full amount of his £25k honor cash to the MVT, which works to protect the UK's independent music venues.
He was given the cheque on mid-October as his latest record the album was declared the outstanding release of the previous year.
Fender has decided to give the cash to the Music Venues Trust, in recognition of the crucial part grassroots venues played in his beginning days.
"I personally couldn't be pursuing this success if it weren't for all the gigs I played around the area, and further afield, when I was just getting going," said the artist. "These spaces are renowned, but they are in difficulty."
From early 2023 onward, more than 150 of these locations have ceased operations – approximately one-sixth of the whole industry in the UK.
Over the past year, major artists such as Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to keep the scene afloat, by including a small levy to their ticket prices, which benefits independent venues.
Fender also took part, raising over £100k on his live tour to assist numerous small stages across England, Scotland, and Wales.
The donation supported locations that were confronting imminent closure due to issues arising from floods, fires and personal losses, as well as licensing issues, conflicts and noise complaints.
Some locations obtained monetary aid in improving infrastructure and technical equipment that positively impacted performers and fans.
"The idea that funds from shows in large arenas backs the smaller venues, where it begins for artists like me, is just common sense," Fender has said.
The musician is among several artists to give his Mercury Prize winnings to worthy causes.
Back when they received the award in the mid-90s for their album the album, vocalist the singer stated that the act would contribute their winnings to the charity War Child.
During 2002, rapper and singer she split her award across several charities, like the NSPCC and a Sickle Cell organization.
"And I gave a thousand pounds to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was growing up and they needed better apparatus," she shared with outlets.
In recent years, the band donated their prize money to the community center that nurtured their band, as well as other independent music bodies.
Also the 1994 recipients they gave their prize to a charity for MS after a friend was found to have the condition.
"The victory was ample," remarked singer Small. "The prize was the cherry on top but we could do without the extra, because we had the cake. So our victory impacted somebody else's life."
In the past week, the trust announced it had rescued two grassroots venues in south-east England, by bringing them into public stewardship.
One venue in that area and The Croft in that location were bought under the Own Our Venues initiative, which is supported by the arts council and supporters who acquire "ownership units" in the buildings.
