The star has given the complete sum of his £25k award cash to the MVT, which operates to save the United Kingdom's small music venues.
The star was given the prize on mid-October as his third album People Watching was declared the best record of the last 12 months.
Fender has opted to donate the funds to the MVT, in acknowledgment of the vital role local spots had in his beginning days.
"As an artist wouldn't be doing my current career if it hadn't been for all the performances I performed around the area, and further afield, when I was starting out," remarked Fender. "These locations are renowned, but they are in difficulty."
From early 2023 onward, over 150 of these venues have shut down – about one-sixth of the entire UK sector.
Recently, well-known musicians like Pulp, Coldplay, Katy Perry and Sheeran have all backed the MVT in its efforts to support the industry, by including a minor surcharge to their ticket costs, which benefits independent venues.
Fender also participated, generating more than £100,000 on his 2024 arena tour to help numerous small stages across Britain.
These funds assisted venues that were dealing with possible closure due to issues arising from flooding, fires and bereavements, as well as permit problems, legal disputes and noise complaints.
Some locations received monetary aid in improving facilities and technical equipment that helped artists and fans.
"The idea that money from performances in large arenas supports the smaller venues, where it all starts for performers like me, is just logical," the star has stated.
He is not the first artist to contribute his Mercury Prize funds to charitable organizations.
In the band earned the award in 1996 for their album the album, frontman the singer announced that the act would contribute their cash to the organization the charity.
In 2002, artist she split her award among several good causes, like the children's charity and a Sickle Cell charity.
"I also donated a £1,000 to my local community centre, to their classes, because I practiced gymnastics when I was growing up and they needed new equipment," the artist shared with a publication.
In recent years, Ezra Collective donated their prize money to the youth organization that developed their band, as well as other local music groups.
And 1994 winners they gave their prize to a multiple sclerosis charity after a friend was found to have the illness.
"The victory was quite enough," stated vocalist Small. "The money was the bonus but we could do without the bonus, because we had the cake. So our victory affected another person's life."
Recently, the Music Venues Trust shared it had rescued two local spots in that region, by transferring them to community ownership.
The Joiners in that area and The Croft in Bristol were bought under the community ownership initiative, which is backed by the arts council and supporters who acquire "ownership units" in the venues.