The artist has given the full amount of his £25k award cash to the MVT, which works to save the UK's grassroots live music spots.
The star was presented with the award on mid-October as his new release People Watching was named the outstanding release of the previous year.
The musician has opted to donate the funds to the trust, in recognition of the essential function small stages had in his initial steps.
"As an artist wouldn't be doing my current career if it weren't for all the shows I performed around the region, and further afield, when I was beginning," said Fender. "These venues are legendary, but they are struggling."
Since the start of 2023, at least 150 of these venues have ceased operations – roughly one-sixth of the entire UK sector.
In the last year, well-known musicians like Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its efforts to help venues survive, by adding a minor surcharge to their admission fees, which benefits local stages.
He also took part, raising over £100k on his live tour to assist thirty-eight local spots across Britain.
The money helped locations that were confronting imminent closure due to difficulties arising from water damage, blazes and family tragedies, as well as regulatory hurdles, conflicts and noise complaints.
Some locations obtained monetary aid in improving infrastructure and sound and lighting systems that directly benefitted performers and audiences.
"The idea that funds from concerts in big venues helps the independent spots, where it kicks off for musicians like me, is just common sense," the star has commented.
The musician is among several artists to give his Mercury Prize prize money to worthy causes.
Back when the band received the trophy in the mid-90s for their album their work, vocalist Jarvis Cocker declared that the band would donate their cash to the non-profit the charity.
That year, artist she shared her bounty across a few organizations, including the children's charity and a Sickle Cell charity.
"And I donated a grand to Highgate Newtown, to their classes, because I did gymnastics when I was younger and they required updated gear," the artist shared with the media.
Two years ago, Ezra Collective contributed their funds to the local youth club that supported their band, alongside other grassroots music organisations.
Additionally 1994 winners they contributed their prize to a charity for MS after a acquaintance was identified with the condition.
"The victory was sufficient," said singer Heather Small. "The money was the cherry on top but we didn't require the extra, because we had the main prize. So our victory impacted the lives of others."
In the past week, the MVT shared it had protected a couple of grassroots venues in south-east England, by bringing them into community ownership.
The Joiners in that area and the second in the city were bought under the Own Our Venues program, which is funded by a national body and music fans who acquire "ownership units" in the venues.
