The artist has handed over the entirety of his £25k award prize money to the MVT, which works to preserve the UK's small music venues.
The star was given the prize on 16 October as his latest record his work was declared the best record of the last 12 months.
He has decided to give the cash to the Music Venues Trust, in appreciation of the vital role local spots played in his initial steps.
"I personally would not have achieved this success if it hadn't been for all the gigs I did around the region, and elsewhere, when I was just getting going," said the artist. "These spaces are legendary, but they are in difficulty."
Since the start of 2023, more than 150 of these venues have shut down – roughly 16% of the whole industry in the UK.
In the last year, well-known musicians such as the band Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its efforts to support the industry, by adding a small levy to their admission fees, which benefits independent venues.
He also joined in, collecting over £100k on his 2024 arena tour to help thirty-eight local spots across Britain.
These funds helped venues that were confronting imminent closure due to issues caused by water damage, blazes and family tragedies, as well as licensing issues, conflicts and noise complaints.
Some locations received funding support in modernizing infrastructure and sound and lighting systems that helped performers and fans.
"The concept that funds from shows in major spaces backs the independent spots, where it begins for artists like me, is just common sense," Fender has said.
Fender is not the first artist to give his Mercury Prize prize money to worthy causes.
Back when the band won the prize in 1996 for their record Different Class, vocalist Cocker announced that the band would donate their winnings to the charity War Child.
During 2002, rapper and singer Ms Dynamite divided her award between multiple good causes, like the NSPCC and a Sickle Cell charity.
"And I gave a thousand pounds to the center, to their gymnastics class, because I trained in gymnastics when I was growing up and they lacked new equipment," the artist told the media.
In recent years, the band contributed their funds to the youth organization that nurtured their act, alongside other grassroots music organisations.
Additionally winners that year the group donated their winnings to a multiple sclerosis charity after a close contact was diagnosed the condition.
"Receiving the award was ample," said singer Heather Small. "The prize was the extra but we could do without the bonus, because we had the main prize. So our winning affected the lives of others."
Last week, the trust shared it had rescued several small stages in the South East, by bringing them into public stewardship.
The Joiners in Southampton and the second in Bristol were acquired under the public acquisition scheme, which is funded by Arts Council England and supporters who buy "shares" in the venues.
