The star has handed over the complete sum of his £25,000 award winnings to the Music Venues Trust, which works to save the UK's independent concert spaces.
Fender was awarded the prize on 16 October as his third album the album was chosen as the best record of the last 12 months.
He has decided to give the cash to the MVT, in recognition of the essential function grassroots venues played in his early career.
"As an artist would not have achieved my current career if it wasn't for all the shows I played around the region, and beyond, when I was just getting going," stated Fender. "These spaces are renowned, but they are facing challenges."
Since the start of 2023, over 150 of these spaces have shut down – approximately one-sixth of the entire UK sector.
Recently, major artists like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to help venues survive, by applying a modest fee to their ticket prices, which supports local stages.
Fender also joined in, collecting over £100k on his 2024 arena tour to support 38 small stages across England, Scotland, and Wales.
The money helped venues that were confronting imminent closure due to challenges caused by water damage, fire incidents and family tragedies, as well as permit problems, legal disputes and sound issues.
Some locations obtained monetary aid in improving facilities and sound and lighting systems that positively impacted musicians and fans.
"The idea that revenue from performances in major spaces backs the local stages, where it kicks off for performers like me, is just sensible," the star has said.
Fender is among several artists to contribute his Mercury Prize prize money to charitable organizations.
When the band earned the prize in 1996 for their album the album, frontman Cocker declared that the band would contribute their prize money to the organization the charity.
In 2002, artist the artist split her bounty between a few charities, like the NSPCC and a charity for Sickle Cell.
"Additionally, I contributed a £1,000 to the center, to their gymnastics class, because I practiced gymnastics when I was younger and they lacked better apparatus," Ms Dynamite explained to outlets.
In recent years, the band contributed their prize money to the local youth club that supported their band, in addition to other local music groups.
And the 1994 recipients the group gave their prize to a multiple sclerosis charity after a friend was diagnosed the condition.
"Winning was sufficient," remarked singer the singer. "The money was the bonus but we could do without the extra, because we had the main prize. So our success impacted somebody else's life."
Recently, the MVT revealed it had rescued a couple of grassroots venues in that region, by transferring them to public stewardship.
One venue in Southampton and The Croft in that location were purchased under the Own Our Venues program, which is funded by Arts Council England and music fans who acquire "shares" in the properties.