The artist has given the entirety of his twenty-five thousand pound award cash to the trust for venues, which functions to save the UK's grassroots live music spots.
He was awarded the prize on 16 October as his latest record People Watching was named the top album of the previous year.
The musician has opted to hand the money over to the Music Venues Trust, in appreciation of the essential function grassroots venues fulfilled in his early career.
"As an artist couldn't be pursuing my current career if it weren't for all the performances I did around the area, and further afield, when I was just getting going," stated Fender. "These locations are renowned, but they are struggling."
Beginning in 2023, over 150 of these spaces have shut down – about 16 percent of the entire UK sector.
In the last year, top acts including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the trust in its efforts to help venues survive, by adding a small levy to their ticket costs, which benefits local stages.
He also participated, raising more than £100,000 on his recent tour to support 38 small stages across the UK.
The donation assisted spaces that were confronting imminent closure due to challenges caused by floods, fires and family tragedies, as well as licensing issues, legal disputes and sound issues.
Some locations received monetary aid in improving amenities and gear that helped artists and concertgoers.
"The notion that funds from shows in major spaces backs the local stages, where it begins for musicians like me, is just sensible," Fender has commented.
Fender is far from the only musician to donate his Mercury Prize prize money to good deeds.
When Pulp received the award in 1996 for their album Different Class, vocalist Jarvis Cocker stated that the group would give their winnings to the non-profit War Child.
In 2002, rapper and singer Ms Dynamite shared her prize across several organizations, such as the NSPCC and a Sickle Cell charity.
"I also contributed a thousand pounds to my local community centre, to their gymnastics program, because I trained in gymnastics when I was growing up and they required new equipment," the artist explained to a publication.
Previously, the band donated their winnings to the community center that developed their band, in addition to other local music groups.
Additionally 1994 winners M People gave their award to a charity for MS after a close contact was found to have the disease.
"Receiving the award was sufficient," remarked singer Heather Small. "The cash was the bonus but we didn't require the bonus, because we had the cake. So our winning touched somebody else's life."
Recently, the Music Venues Trust announced it had rescued several small stages in the South East, by bringing them into local control.
The first in the city and the second in the city were purchased under the public acquisition program, which is supported by Arts Council England and enthusiasts who buy "ownership units" in the buildings.
