The star has handed over the entirety of his £25,000 award prize money to the Music Venues Trust, which functions to save the Britain's grassroots live music spots.
The star was presented with the award on mid-October as his new release People Watching was declared the top album of the previous year.
The musician has decided to hand the money over to the MVT, in recognition of the essential function grassroots venues played in his early career.
"As an artist would not have achieved this success if it wasn't for all the gigs I performed around the area, and beyond, when I was starting out," said Fender. "These spaces are iconic, but they are facing challenges."
Since the start of 2023, more than 150 of these venues have ceased operations – approximately 16% of the whole industry in the UK.
Recently, top acts such as Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all backed the MVT in its efforts to support the industry, by including a minor surcharge to their ticket costs, which benefits smaller concert halls.
He also joined in, raising in excess of £100,000 on his live tour to help thirty-eight local spots across the UK.
The money helped spaces that were dealing with potential shutdown due to difficulties caused by flooding, fire incidents and family tragedies, as well as licensing issues, legal disputes and sound issues.
Some locations were granted funding support in improving amenities and sound and lighting systems that directly benefitted musicians and concertgoers.
"The notion that funds from performances in big venues helps the smaller venues, where it begins for performers like me, is just logical," the star has commented.
Fender is far from the only musician to contribute his Mercury Prize winnings to good deeds.
Back when the band received the prize in the mid-90s for their album Different Class, vocalist Jarvis Cocker stated that the act would give their prize money to the non-profit War Child.
During 2002, artist she divided her bounty between multiple organizations, like the NSPCC and a Sickle Cell organization.
"I also donated a grand to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was younger and they lacked new equipment," she explained to the media.
Previously, they donated their prize money to the youth organization that supported their act, as well as other local music groups.
Also winners that year M People donated their winnings to a charity for MS after a close contact was found to have the disease.
"Receiving the award was sufficient," said artist the singer. "The prize was the bonus but we didn't require the bonus, because we had the honor. So our victory impacted another person's life."
Recently, the MVT revealed it had rescued a couple of grassroots venues in the South East, by bringing them into local control.
One venue in Southampton and the second in Bristol were purchased under the community ownership scheme, which is backed by the arts council and supporters who acquire "ownership units" in the buildings.