The artist has donated the full amount of his £25,000 award cash to the Music Venues Trust, which functions to preserve the United Kingdom's grassroots concert spaces.
Fender was awarded the cheque on 16 October as his new release People Watching was chosen as the best record of the previous year.
He has opted to give the cash to the trust, in appreciation of the vital role grassroots venues played in his initial steps.
"I would not have achieved my current career if it wasn't for all the shows I played around the region, and elsewhere, when I was just getting going," stated the artist. "These venues are iconic, but they are facing challenges."
Beginning in 2023, at least 150 of these locations have shut down – approximately one-sixth of the entire UK sector.
Recently, top acts including the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the trust in its attempts to keep the scene afloat, by including a small levy to their admission fees, which supports local stages.
He also joined in, generating in excess of £100,000 on his live tour to help numerous local spots across Britain.
These funds assisted venues that were facing possible closure due to difficulties stemming from flooding, fires and bereavements, as well as regulatory hurdles, legal disputes and noise complaints.
Some locations were granted financial assistance in upgrading infrastructure and gear that directly benefitted musicians and concertgoers.
"The idea that revenue from shows in large arenas supports the local stages, where it kicks off for musicians like me, is just sensible," Fender has said.
The musician is among several artists to give his Mercury Prize winnings to charitable organizations.
When they earned the award in the year 1996 for their record Different Class, frontman Cocker stated that the group would give their prize money to the charity War Child.
During 2002, rapper and singer Ms Dynamite shared her prize across several organizations, such as the children's charity and a Sickle Cell charity.
"I also contributed a thousand pounds to my local community centre, to their gymnastics program, because I practiced gymnastics when I was younger and they lacked new equipment," the artist shared with the media.
In recent years, the band contributed their funds to the community center that nurtured their act, as well as other local music groups.
Additionally winners that year they donated their award to a charity for MS after a close contact was found to have the disease.
"Receiving the award was quite enough," remarked vocalist Small. "The cash was the bonus but we didn't need the extra, because we had the cake. So our success impacted the lives of others."
Recently, the Music Venues Trust shared it had saved several small stages in south-east England, by placing them under public stewardship.
The first in Southampton and The Croft in the city were bought under the public acquisition program, which is backed by the arts council and supporters who buy "ownership units" in the properties.
