The star has donated the full amount of his £25,000 award prize money to the MVT, which operates to save the UK's grassroots live music spots.
He was presented with the prize on mid-October as his latest record People Watching was declared the outstanding release of the past year.
He has opted to hand the money over to the Music Venues Trust, in acknowledgment of the vital role local spots played in his early career.
"I couldn't be pursuing 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 just getting going," remarked the artist. "These venues are iconic, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have permanently closed – approximately one-sixth of the entire UK sector.
In the last year, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its initiatives to support the industry, by including a small levy to their admission fees, which goes to help independent venues.
He also joined in, generating in excess of £100,000 on his recent tour to assist thirty-eight small stages across England, Scotland, and Wales.
The money supported venues that were confronting possible closure due to challenges caused by flooding, fires and family tragedies, as well as permit problems, legal disputes and noise complaints.
Additional spaces obtained financial assistance in modernizing infrastructure and sound and lighting systems that positively impacted musicians and fans.
"The concept that funds from shows in big venues helps the local stages, where it begins for performers like me, is just common sense," Fender has stated.
He is among several artists to contribute his Mercury Prize prize money to worthy causes.
Back when they received the prize in the mid-90s for their release the album, lead singer Cocker declared that the act would give their prize money to the non-profit the charity.
In 2002, musician the artist split her prize between multiple charities, like the NSPCC and a Sickle Cell charity.
"Additionally, I gave a thousand pounds to the center, to their classes, because I trained in gymnastics when I was growing up and they needed better apparatus," Ms Dynamite explained to outlets.
Two years ago, the band gave their funds to the local youth club that developed their group, alongside other independent music bodies.
Additionally 1994 winners M People gave their award to a MS organization after a close contact was identified with the illness.
"Winning was quite enough," remarked artist Small. "The money was the bonus but we didn't require the bonus, because we had the honor. So our victory impacted the lives of others."
In the past week, the Music Venues Trust shared it had rescued two local spots in the South East, by transferring them to public stewardship.
The first in the city and the second in the city were purchased under the community ownership initiative, which is funded by a national body and supporters who purchase "ownership units" in the buildings.