The artist has handed over the full amount of his £25,000 award winnings to the trust for venues, which works to save the United Kingdom's small live music spots.
The star was given the cheque on mid-October as his third album the album was named the best record of the previous year.
He has opted to give the cash to the Music Venues Trust, in appreciation of the vital role local spots fulfilled in his initial steps.
"I personally wouldn't be doing this success if it weren't for all the gigs I played around the area, and beyond, when I was beginning," remarked the artist. "These locations are renowned, but they are in difficulty."
From early 2023 onward, more than 150 of these spaces have ceased operations – approximately 16% of the entire UK sector.
Recently, well-known musicians like Pulp, Coldplay, Katy Perry and Sheeran have all aided the trust in its efforts to support the industry, by including a minor surcharge to their ticket costs, which goes to help local stages.
Fender also took part, raising over £100k on his recent tour to assist thirty-eight local spots across the UK.
These funds supported spaces that were confronting potential shutdown due to challenges arising from water damage, blazes and family tragedies, as well as permit problems, conflicts and neighbor objections.
Some locations received financial assistance in upgrading infrastructure and technical equipment that helped artists and concertgoers.
"The idea that money from shows in big venues backs the independent spots, where it begins for artists like me, is just sensible," Fender has commented.
Fender is far from the only musician to give his Mercury Prize funds to charitable organizations.
When Pulp earned the trophy in the year 1996 for their release Different Class, lead singer the singer announced that the band would donate their winnings to the charity the charity.
In 2002, artist Ms Dynamite shared her prize across several charities, including the NSPCC and a Sickle Cell charity.
"I also donated a grand to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was growing up and they required new equipment," she explained to a publication.
Previously, Ezra Collective contributed their funds to the community center that developed their band, alongside other grassroots music organisations.
Additionally winners that year the group contributed their award to a multiple sclerosis charity after a close contact was found to have the illness.
"Winning was ample," remarked singer Small. "The money was the bonus but we could do without the extra, because we had the main prize. So our success affected another person's life."
In the past week, the MVT revealed it had saved two small stages in south-east England, by transferring them to community ownership.
The first in the city and The Croft in Bristol were acquired under the community ownership scheme, which is backed by a national body and enthusiasts who purchase "shares" in the venues.