The artist has given the complete sum of his £25k honor cash to the MVT, which functions to save the United Kingdom's grassroots concert spaces.
He was presented with the prize on October 16 as his third album his work was chosen as the outstanding release of the past year.
He has decided to donate the funds to the Music Venues Trust, in recognition of the crucial part small stages fulfilled in his beginning days.
"As an artist couldn't be pursuing what I am doing today if it weren't for all the shows I performed around the area, and beyond, when I was beginning," stated Fender. "These spaces are renowned, but they are in difficulty."
From early 2023 onward, over 150 of these spaces have ceased operations – roughly 16% of the whole industry in the UK.
Over the past year, top acts such as Pulp, Coldplay, Katy Perry and Sheeran have all aided the trust in its initiatives to keep the scene afloat, by applying a modest fee to their ticket prices, which goes to help local stages.
Fender also participated, collecting over £100k on his 2024 arena tour to support thirty-eight grassroots venues across Britain.
These funds helped spaces that were dealing with imminent closure due to challenges caused by water damage, fire incidents and bereavements, as well as regulatory hurdles, legal disputes and sound issues.
Some locations were granted funding support in improving infrastructure and sound and lighting systems that helped performers and fans.
"The idea that revenue from concerts in large arenas backs the independent spots, where it all starts for artists like me, is just common sense," the star has stated.
He is not the first artist to give his Mercury Prize winnings to good deeds.
When they earned the trophy in 1996 for their album Different Class, lead singer Jarvis Cocker announced that the act would contribute their prize money to the organization War Child.
In 2002, artist Ms Dynamite split her award across multiple good causes, such as the NSPCC and a Sickle Cell organization.
"And I contributed a thousand pounds to the center, to their gymnastics class, because I practiced gymnastics when I was a child and they required updated gear," the artist told outlets.
Previously, Ezra Collective gave their winnings to the youth organization that nurtured their group, in addition to other local music groups.
And 1994 winners the group gave their prize to a charity for MS after a close contact was found to have the condition.
"The victory was sufficient," said artist the singer. "The prize was the extra but we didn't require the extra, because we had the main prize. So our victory impacted the lives of others."
Last week, the Music Venues Trust shared it had rescued a couple of small stages in that region, by bringing them into community ownership.
One venue in the city and the other in Bristol were bought under the public acquisition initiative, which is supported by a national body and supporters who acquire "shares" in the venues.