The artist has donated the full amount of his twenty-five thousand pound honor cash to the Music Venues Trust, which works to save the UK's grassroots music venues.
He was awarded the cheque on 16 October as his latest record his work was declared the top album of the previous year.
He has opted to hand the money over to the MVT, in appreciation of the essential function local spots fulfilled in his early career.
"I personally couldn't be pursuing my current career if it wasn't for all the gigs I performed around the area, and further afield, when I was just getting going," stated Fender. "These spaces are iconic, but they are struggling."
Since the start of 2023, over 150 of these venues have ceased operations – roughly 16 percent of the total UK scene.
Over the past year, well-known musicians such as Pulp, Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its initiatives to support the industry, by adding a minor surcharge to their ticket prices, which supports smaller concert halls.
He also joined in, generating more than £100,000 on his live tour to assist numerous small stages across Britain.
The donation supported spaces that were facing imminent closure due to challenges caused by water damage, fire incidents and personal losses, as well as permit problems, court cases and noise complaints.
Additional spaces were granted financial assistance in modernizing amenities and gear that positively impacted artists and audiences.
"The notion that revenue from shows in large arenas helps the independent spots, where it all starts for performers like me, is just common sense," the star has said.
Fender is far from the only musician to contribute his Mercury Prize prize money to worthy causes.
Back when the band received the trophy in 1996 for their release their work, frontman the singer declared that the act would contribute their winnings to the charity War Child.
That year, rapper and singer the artist divided her bounty across multiple good causes, like the children's charity and a charity for Sickle Cell.
"I also contributed a grand to the center, to their gymnastics class, because I did gymnastics when I was younger and they required new equipment," the artist shared with the media.
Two years ago, the band donated their winnings to the youth organization that supported their band, alongside other grassroots music organisations.
Also the 1994 recipients the group donated their winnings to a multiple sclerosis charity after a acquaintance was found to have the illness.
"The victory was sufficient," remarked vocalist Small. "The prize was the bonus but we didn't require the cherry, because we had the main prize. So our success impacted the lives of others."
In the past week, the MVT announced it had saved a couple of local spots in south-east England, by bringing them into community ownership.
The first in that area and the other in Bristol were bought under the Own Our Venues program, which is supported by Arts Council England and music fans who buy "shares" in the properties.
