The star has donated the entirety of his £25,000 award winnings to the trust for venues, which operates to preserve the UK's independent music venues.
The star was given the award on October 16 as his third album People Watching was declared the outstanding release of the last 12 months.
Fender has opted to hand the money over to the trust, in appreciation of the crucial part local spots had in his initial steps.
"I couldn't be pursuing this success 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 spaces are legendary, but they are struggling."
Since the start of 2023, over 150 of these locations have shut down – about 16 percent of the entire UK sector.
In the last year, top acts including Pulp, Coldplay, Katy Perry and Sheeran have all backed the Music Venues Trust in its attempts to keep the scene afloat, by adding a small levy to their ticket prices, which goes to help local stages.
Fender also joined in, generating more than £100,000 on his live tour to help thirty-eight local spots across the UK.
The money helped venues that were facing possible closure due to challenges arising from floods, fires and personal losses, as well as licensing issues, conflicts and noise complaints.
Additional spaces were granted monetary aid in improving infrastructure and sound and lighting systems that helped musicians and audiences.
"The concept that money from performances in major spaces backs the independent spots, where it kicks off for artists like me, is just logical," Fender has stated.
He is far from the only musician to donate his Mercury Prize prize money to worthy causes.
When they won the award in the mid-90s for their album the album, lead singer Cocker announced that the act would give their cash to the organization War Child.
That year, artist Ms Dynamite shared her prize between multiple charities, including the children's charity and a Sickle Cell charity.
"Additionally, I donated a grand to my local community centre, to their gymnastics class, because I trained in gymnastics when I was growing up and they lacked better apparatus," Ms Dynamite shared with outlets.
Two years ago, they donated their prize money to the local youth club that developed their act, in addition to other local music groups.
Also the 1994 recipients the group contributed their winnings to a multiple sclerosis charity after a acquaintance was found to have the illness.
"Winning was quite enough," stated artist the singer. "The cash was the bonus but we didn't need the extra, because we had the main prize. So our success impacted the lives of others."
Recently, the trust revealed it had rescued two grassroots venues in south-east England, by placing them under local control.
The Joiners in the city and The Croft in Bristol were purchased under the Own Our Venues scheme, which is backed by the arts council and supporters who purchase "ownership units" in the buildings.
