The star has given the complete sum of his £25,000 award cash to the Music Venues Trust, which functions to preserve the United Kingdom's independent music venues.
He was awarded the prize on mid-October as his third album the album was named the best record of the previous year.
The musician has chosen to hand the money over to the MVT, in recognition of the crucial part local spots played in his beginning days.
"As an artist wouldn't be doing my current career if it wasn't for all the gigs I performed around the North East, and elsewhere, when I was beginning," remarked the artist. "These venues are renowned, but they are in difficulty."
From early 2023 onward, at least 150 of these spaces have shut down – about 16% of the whole industry in the UK.
In the last year, top acts such as the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to help venues survive, by applying a small levy to their ticket prices, which benefits smaller concert halls.
Fender also joined in, collecting more than £100,000 on his live tour to support 38 grassroots venues across England, Scotland, and Wales.
The money assisted venues that were dealing with possible closure due to challenges stemming from water damage, fires and personal losses, as well as licensing issues, legal disputes and noise complaints.
Other venues obtained funding support in upgrading infrastructure and gear that helped performers and fans.
"The concept that funds from performances in big venues supports the local stages, where it kicks off for performers like me, is just logical," Fender has stated.
The musician is among several artists to contribute his Mercury Prize funds to good deeds.
Back when they earned the award in the year 1996 for their release the album, vocalist the singer declared that the group would give their prize money to the charity War Child.
During 2002, rapper and singer Ms Dynamite split her award between several good causes, including the NSPCC and a Sickle Cell charity.
"And I contributed a grand to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was growing up and they required updated gear," she explained to the media.
Two years ago, Ezra Collective contributed their winnings to the local youth club that developed their act, in addition to other grassroots music organisations.
Additionally 1994 winners the group contributed their winnings to a MS organization after a close contact was found to have the illness.
"Winning was ample," remarked vocalist Small. "The cash was the cherry on top but we didn't need the cherry, because we had the cake. So our success impacted the lives of others."
Last week, the trust announced it had saved several local spots in the South East, by bringing them into local control.
One venue in the city and the second in that location were bought under the community ownership scheme, which is funded by a national body and music fans who purchase "ownership units" in the venues.
