The star has handed over the entirety of his £25k award winnings to the Music Venues Trust, which operates to protect the Britain's small music venues.
Fender was awarded the prize on October 16 as his third album his work was named the best record of the past year.
He has decided to donate the funds to the Music Venues Trust, in acknowledgment of the essential function small stages fulfilled in his early career.
"I would not have achieved my current career if it weren't for all the gigs I performed around the region, and further afield, when I was just getting going," stated the artist. "These spaces are iconic, but they are facing challenges."
Since the start of 2023, at least 150 of these locations have permanently closed – approximately 16% of the entire UK sector.
In the last year, well-known musicians such as the band Pulp, the group Coldplay, Katy Perry and Sheeran have all supported the Music Venues Trust in its efforts to support the industry, by including a modest fee to their admission fees, which benefits independent venues.
Fender also participated, collecting over £100k on his recent tour to help 38 grassroots venues across England, Scotland, and Wales.
These funds assisted locations that were confronting possible closure due to challenges stemming from flooding, fire incidents and bereavements, as well as licensing issues, legal disputes and noise complaints.
Other venues obtained monetary aid in upgrading infrastructure and gear that positively impacted musicians and concertgoers.
"The idea that funds from shows in large arenas supports the independent spots, where it begins for musicians like me, is just common sense," Fender has stated.
The musician is not the first artist to contribute his Mercury Prize winnings to good deeds.
When Pulp won the trophy in the mid-90s for their release Different Class, lead singer Cocker announced that the act would give their cash to the organization War Child.
In 2002, musician the artist divided her prize between a few good causes, such as the NSPCC and a charity for Sickle Cell.
"I also contributed a grand to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was growing up and they needed new equipment," she explained to a publication.
In recent years, they donated their prize money to the youth organization that supported their band, alongside other local music groups.
Also the 1994 recipients they donated their award to a MS organization after a friend was found to have the illness.
"Receiving the award was sufficient," stated artist Heather Small. "The cash was the cherry on top but we could do without the extra, because we had the main prize. So our winning impacted another person's life."
Last week, the MVT shared it had rescued a couple of local spots in that region, by placing them under community ownership.
One venue in the city and the second in Bristol were bought under the Own Our Venues scheme, which is funded by the arts council and supporters who buy "stakes" in the buildings.
