The artist has given the entirety of his £25,000 award cash to the Music Venues Trust, which works to save the UK's small concert spaces.
The star was presented with the cheque on October 16 as his latest record People Watching was chosen as the best record of the last 12 months.
He has chosen to give the cash to the trust, in acknowledgment of the crucial part small stages fulfilled in his beginning days.
"I wouldn't be doing my current career if it weren't for all the shows I did around the area, and beyond, when I was starting out," said the artist. "These venues are iconic, but they are in difficulty."
Beginning in 2023, more than 150 of these locations have ceased operations – approximately one-sixth of the total UK scene.
Over the past year, well-known musicians including Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its attempts to help venues survive, by adding a small levy to their admission fees, which supports smaller concert halls.
Fender also joined in, raising in excess of £100,000 on his recent tour to assist numerous small stages across Britain.
These funds supported locations that were confronting possible closure due to challenges caused by water damage, fire incidents and bereavements, as well as permit problems, conflicts and noise complaints.
Additional spaces obtained funding support in improving amenities and sound and lighting systems that directly benefitted musicians and audiences.
"The concept that money from concerts in big venues helps the local stages, where it kicks off for performers like me, is just common sense," the star has commented.
He is not the first artist to give his Mercury Prize funds to worthy causes.
In Pulp earned the trophy in the year 1996 for their release the album, frontman Jarvis Cocker declared that the group would contribute their cash to the non-profit War Child.
During 2002, musician the artist divided her prize among multiple organizations, such as the NSPCC and a Sickle Cell organization.
"Additionally, I donated a £1,000 to Highgate Newtown, to their gymnastics class, because I practiced gymnastics when I was growing up and they required new equipment," the artist explained to a publication.
In recent years, the band donated their winnings to the youth organization that supported their group, alongside other independent music bodies.
Additionally winners that year the group contributed their award to a charity for MS after a close contact was diagnosed the condition.
"The victory was ample," said artist the singer. "The money was the extra but we didn't need the extra, because we had the main prize. So our winning affected somebody else's life."
Recently, the MVT shared it had rescued a couple of small stages in south-east England, by placing them under community ownership.
One venue in the city and the other in Bristol were bought under the Own Our Venues program, which is funded by Arts Council England and music fans who purchase "shares" in the properties.
