The artist has donated the entirety of his £25k honor winnings to the trust for venues, which functions to save the United Kingdom's small concert spaces.
He was given the cheque on 16 October as his third album People Watching was chosen as the top album of the last 12 months.
The musician has chosen to hand the money over to the Music Venues Trust, in acknowledgment of the vital role grassroots venues played in his beginning days.
"I wouldn't be doing what I am doing today if it wasn't for all the shows I played around the region, and further afield, when I was beginning," said Fender. "These spaces are iconic, but they are in difficulty."
Beginning in 2023, over 150 of these locations have permanently closed – roughly 16% of the entire UK sector.
In the last year, well-known musicians like the band Pulp, Coldplay, Katy Perry and Sheeran have all backed the Music Venues Trust in its attempts to keep the scene afloat, by adding a small levy to their ticket costs, which supports smaller concert halls.
Fender also participated, generating in excess of £100,000 on his recent tour to support numerous small stages across the UK.
The money assisted spaces that were dealing with imminent closure due to issues arising from floods, fires and family tragedies, as well as permit problems, legal disputes and noise complaints.
Some locations were granted monetary aid in modernizing infrastructure and sound and lighting systems that helped musicians and concertgoers.
"The concept that funds from performances in major spaces backs the smaller venues, where it all starts for musicians like me, is just common sense," Fender has said.
He is among several artists to donate his Mercury Prize winnings to good deeds.
Back when the band received the prize in the mid-90s for their record their work, vocalist Jarvis Cocker announced that the group would contribute their prize money to the non-profit the charity.
During 2002, rapper and singer she split her bounty among several good causes, such as the NSPCC and a Sickle Cell charity.
"And I gave a grand to the center, to their gymnastics program, because I trained in gymnastics when I was younger and they lacked better apparatus," she shared with the media.
Previously, Ezra Collective gave their prize money to the local youth club that developed their group, in addition to other independent music bodies.
Also the 1994 recipients the group gave their winnings to a MS organization after a friend was diagnosed the disease.
"The victory was ample," said vocalist the singer. "The money was the extra but we could do without the extra, because we had the honor. So our winning touched another person's life."
Recently, the trust revealed it had saved a couple of grassroots venues in that region, by placing them under public stewardship.
The first in that area and the second in the city were purchased under the community ownership program, which is supported by a national body and supporters who acquire "stakes" in the properties.