The artist has given the complete sum of his £25k award winnings to the Music Venues Trust, which operates to preserve the UK's small live music spots.
He was awarded the prize on October 16 as his third album the album was named the top album of the last 12 months.
He has opted to donate the funds to the Music Venues Trust, in recognition of the essential function grassroots venues had in his initial steps.
"As an artist wouldn't be doing this success if it hadn't been for all the performances I did around the region, and further afield, when I was just getting going," remarked the artist. "These spaces are renowned, but they are in difficulty."
Since the start of 2023, over 150 of these venues have shut down – approximately one-sixth of the whole industry in the UK.
Recently, top acts like the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its initiatives to help venues survive, by adding a small levy to their ticket costs, which goes to help local stages.
He also joined in, collecting in excess of £100,000 on his 2024 arena tour to help 38 local spots across the UK.
The money helped locations that were dealing with potential shutdown due to challenges stemming from water damage, blazes and bereavements, as well as permit problems, conflicts and noise complaints.
Some locations received funding support in modernizing infrastructure and gear that positively impacted performers and audiences.
"The idea that funds from concerts in big venues supports the independent spots, where it kicks off for performers like me, is just logical," Fender has said.
He is not the first artist to donate his Mercury Prize funds to good deeds.
When Pulp received the trophy in the year 1996 for their release their work, frontman the singer stated that the group would donate their cash to the charity the charity.
That year, artist Ms Dynamite divided her bounty across a few organizations, including the children's charity and a Sickle Cell organization.
"Additionally, I gave a £1,000 to my local community centre, to their classes, because I practiced gymnastics when I was a child and they needed better apparatus," the artist told a publication.
Previously, Ezra Collective contributed their winnings to the community center that nurtured their group, alongside other independent music bodies.
Also 1994 winners M People gave their prize to a MS organization after a friend was found to have the illness.
"Winning was quite enough," said artist Heather Small. "The prize was the extra but we didn't need the bonus, because we had the main prize. So our victory touched the lives of others."
Recently, the trust shared it had protected two small stages in that region, by transferring them to local control.
One venue in Southampton and the other in the city were purchased under the public acquisition scheme, which is funded by the arts council and supporters who buy "shares" in the buildings.
