The artist has donated the full amount of his £25,000 award prize money to the MVT, which functions to preserve the Britain's independent concert spaces.
The star was awarded the prize on mid-October as his third album People Watching was chosen as the best record of the last 12 months.
Fender has chosen to give the cash to the Music Venues Trust, in acknowledgment of the crucial part grassroots venues fulfilled in his beginning days.
"I would not have achieved my current career if it wasn't for all the performances I performed around the North East, and beyond, when I was starting out," stated Fender. "These locations are renowned, but they are struggling."
Beginning in 2023, over 150 of these spaces have shut down – approximately 16 percent of the whole industry in the UK.
Over the past year, top acts including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its attempts to help venues survive, by adding a minor surcharge to their ticket prices, which supports independent venues.
He also joined in, collecting more than £100,000 on his live tour to help 38 small stages across Britain.
These funds helped spaces that were confronting potential shutdown due to issues stemming from floods, fires and bereavements, as well as licensing issues, court cases and neighbor objections.
Additional spaces were granted financial assistance in upgrading facilities and sound and lighting systems that helped musicians and fans.
"The notion that revenue from concerts in big venues helps the local stages, where it all starts for performers like me, is just sensible," Fender has stated.
Fender is far from the only musician to contribute his Mercury Prize prize money to good deeds.
Back when they earned the award in the mid-90s for their record the album, frontman the singer announced that the band would donate their cash to the organization War Child.
In 2002, musician Ms Dynamite divided her award across several organizations, including the children's charity and a Sickle Cell charity.
"I also contributed a thousand pounds to the center, to their gymnastics program, because I did gymnastics when I was a child and they lacked new equipment," she shared with outlets.
Two years ago, they donated their winnings to the community center that nurtured their band, alongside other grassroots music organisations.
Additionally 1994 winners the group contributed their prize to a MS organization after a friend was identified with the illness.
"The victory was quite enough," stated singer Small. "The money was the cherry on top but we didn't need the extra, because we had the cake. So our winning touched somebody else's life."
Last week, the MVT revealed it had protected two small stages in that region, by transferring them to local control.
The Joiners in that area and The Croft in Bristol were purchased under the public acquisition program, which is supported by Arts Council England and music fans who acquire "ownership units" in the venues.