The star has given the complete sum of his twenty-five thousand pound honor cash to the Music Venues Trust, which operates to save the United Kingdom's small concert spaces.
The star was presented with the award on October 16 as his latest record his work was chosen as the top album of the previous year.
He has chosen to donate the funds to the trust, in acknowledgment of the essential function small stages fulfilled in his early career.
"I wouldn't be doing what I am doing today if it weren't for all the gigs I played around the area, and elsewhere, when I was just getting going," remarked the artist. "These spaces are legendary, but they are in difficulty."
From early 2023 onward, over 150 of these venues have shut down – roughly 16 percent of the whole industry in the UK.
Over the past year, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its attempts to help venues survive, by applying a modest fee to their ticket prices, which goes to help independent venues.
Fender also took part, raising more than £100,000 on his 2024 arena tour to help 38 small stages across Britain.
The money helped venues that were dealing with potential shutdown due to issues caused by floods, fire incidents and bereavements, as well as permit problems, conflicts and neighbor objections.
Additional spaces received financial assistance in upgrading amenities and gear that directly benefitted musicians and concertgoers.
"The notion that money from shows in large arenas supports the independent spots, where it kicks off for musicians like me, is just common sense," Fender has stated.
He is far from the only musician to contribute his Mercury Prize winnings to good deeds.
In they received the trophy in 1996 for their album Different Class, vocalist Jarvis Cocker announced that the band would donate their winnings to the charity War Child.
During 2002, rapper and singer Ms Dynamite shared her prize among a few good causes, like the NSPCC and a Sickle Cell organization.
"Additionally, I gave a £1,000 to the center, to their classes, because I practiced gymnastics when I was growing up and they required better apparatus," Ms Dynamite explained to the media.
Previously, they gave their funds to the youth organization that developed their group, alongside other local music groups.
And 1994 winners they contributed their prize to a charity for MS after a close contact was found to have the disease.
"Receiving the award was quite enough," remarked singer Heather Small. "The cash was the extra but we didn't require the cherry, because we had the cake. So our success affected somebody else's life."
Last week, the MVT revealed it had protected a couple of grassroots venues in that region, by bringing them into community ownership.
One venue in Southampton and the second in the city were acquired under the community ownership program, which is backed by the arts council and enthusiasts who acquire "stakes" in the buildings.
