The star has donated the entirety of his £25k honor cash to the Music Venues Trust, which operates to save the UK's grassroots live music spots.
The star was given the cheque on mid-October as his latest record his work was declared the outstanding release of the past year.
He has opted to give the cash to the Music Venues Trust, in appreciation of the essential function grassroots venues played in his beginning days.
"I personally wouldn't be doing what I am doing today if it hadn't been for all the shows I performed around the area, and further afield, when I was starting out," remarked the artist. "These locations are iconic, but they are facing challenges."
Since the start of 2023, over 150 of these locations have ceased operations – about 16 percent of the entire UK sector.
In the last year, top acts such as the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its efforts to keep the scene afloat, by adding a minor surcharge to their ticket prices, which benefits smaller concert halls.
Fender also joined in, generating in excess of £100,000 on his recent tour to assist thirty-eight small stages across the UK.
These funds helped spaces that were dealing with imminent closure due to difficulties arising from water damage, blazes and family tragedies, as well as regulatory hurdles, court cases and noise complaints.
Other venues received financial assistance in upgrading infrastructure and sound and lighting systems that helped performers and audiences.
"The concept that revenue from shows in big venues backs the smaller venues, where it begins for performers like me, is just logical," Fender has stated.
Fender is far from the only musician to give his Mercury Prize funds to good deeds.
In Pulp received the award in the mid-90s for their album the album, vocalist Jarvis Cocker stated that the group would give their prize money to the non-profit War Child.
That year, musician she split her award between several charities, such as the NSPCC and a Sickle Cell organization.
"Additionally, I gave a £1,000 to the center, to their classes, because I practiced gymnastics when I was younger and they lacked better apparatus," the artist explained to a publication.
Two years ago, they donated their funds to the youth organization that developed their band, alongside other independent music bodies.
Additionally 1994 winners they gave their prize to a MS organization after a close contact was found to have the illness.
"Winning was sufficient," said artist the singer. "The money was the bonus but we didn't require the bonus, because we had the honor. So our winning impacted the lives of others."
Recently, the Music Venues Trust revealed it had protected a couple of local spots in that region, by bringing them into community ownership.
The Joiners in the city and the second in that location were purchased under the Own Our Venues initiative, which is funded by Arts Council England and music fans who buy "stakes" in the properties.
