The star has donated the full amount of his £25k award winnings to the MVT, which works to protect the United Kingdom's small music venues.
Fender was presented with the cheque on 16 October as his latest record People Watching was named the outstanding release of the previous year.
The musician has opted to hand the money over to the Music Venues Trust, in appreciation of the vital role local spots played in his initial steps.
"I personally wouldn't be doing this success if it weren't for all the performances I did around the area, and further afield, when I was starting out," stated Fender. "These locations are iconic, but they are struggling."
From early 2023 onward, over 150 of these spaces have shut down – approximately 16 percent of the entire UK sector.
Recently, top acts such as Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its initiatives to support the industry, by applying a minor surcharge to their admission fees, which supports local stages.
Fender also participated, raising in excess of £100,000 on his live tour to help 38 grassroots venues across the UK.
The donation supported locations that were dealing with imminent closure due to issues arising from floods, fires and personal losses, as well as licensing issues, court cases and noise complaints.
Some locations were granted funding support in improving amenities and technical equipment that directly benefitted performers and concertgoers.
"The notion that revenue from shows in big venues backs the local stages, where it begins for musicians like me, is just logical," Fender has commented.
Fender is among several artists to donate his Mercury Prize winnings to worthy causes.
In the band won the award in 1996 for their release the album, frontman the singer declared that the act would donate their cash to the non-profit War Child.
That year, rapper and singer the artist divided her award across a few charities, such as the NSPCC and a Sickle Cell charity.
"I also gave a £1,000 to the center, to their gymnastics class, because I practiced gymnastics when I was a child and they needed new equipment," the artist told a publication.
In recent years, the band gave their prize money to the youth organization that supported their act, in addition to other local music groups.
Also the 1994 recipients the group donated their prize to a MS organization after a acquaintance was found to have the illness.
"Receiving the award was quite enough," said artist Small. "The money was the extra but we didn't require the extra, because we had the honor. So our victory touched the lives of others."
In the past week, the trust shared it had saved two small stages in south-east England, by bringing them into public stewardship.
One venue in the city and The Croft in Bristol were purchased under the public acquisition program, which is supported by the arts council and enthusiasts who buy "stakes" in the venues.