The artist has given the complete sum of his twenty-five thousand pound award cash to the trust for venues, which works to protect the Britain's grassroots concert spaces.
He was awarded the prize on mid-October as his latest record his work was declared the best record of the previous year.
Fender has decided to give the cash to the Music Venues Trust, in acknowledgment of the essential function local spots had in his beginning days.
"I personally wouldn't be doing this success if it weren't for all the shows I did around the area, and further afield, when I was starting out," remarked the artist. "These venues are iconic, but they are in difficulty."
Since the start of 2023, over 150 of these spaces have permanently closed – roughly 16 percent of the total UK scene.
In the last year, top acts including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its attempts to help venues survive, by including a minor surcharge to their ticket prices, which supports smaller concert halls.
Fender also took part, generating more than £100,000 on his 2024 arena tour to assist thirty-eight grassroots venues across Britain.
These funds helped venues that were dealing with potential shutdown due to issues stemming from floods, blazes and family tragedies, as well as permit problems, court cases and sound issues.
Other venues obtained monetary aid in improving amenities and technical equipment that helped artists and fans.
"The idea that money from shows in large arenas backs the local stages, where it begins for artists like me, is just common sense," Fender has commented.
The musician is among several artists to give his Mercury Prize funds to worthy causes.
When they earned the award in the year 1996 for their album their work, lead singer the singer announced that the band would donate their cash to the non-profit War Child.
During 2002, artist Ms Dynamite split her award among a few good causes, such as the NSPCC and a Sickle Cell charity.
"Additionally, I gave a grand to the center, to their gymnastics class, because I did gymnastics when I was younger and they needed new equipment," Ms Dynamite shared with a publication.
In recent years, Ezra Collective contributed their prize money to the community center that developed their band, as well as other local music groups.
And the 1994 recipients they contributed their award to a charity for MS after a close contact was diagnosed the disease.
"Receiving the award was quite enough," remarked singer Small. "The prize was the extra but we didn't require the bonus, because we had the main prize. So our success impacted another person's life."
In the past week, the trust revealed it had protected two local spots in south-east England, by transferring them to local control.
One venue in Southampton and The Croft in that location were acquired under the Own Our Venues program, which is funded by Arts Council England and enthusiasts who acquire "shares" in the properties.