The star has given the entirety of his £25,000 honor cash to the trust for venues, which functions to save the Britain's small music venues.
The star was awarded the award on 16 October as his third album the album was named the outstanding release of the last 12 months.
Fender has chosen to hand the money over to the Music Venues Trust, in appreciation of the crucial part grassroots venues fulfilled in his beginning days.
"I personally wouldn't be doing what I am doing today if it weren't for all the gigs I played around the region, and elsewhere, when I was beginning," stated Fender. "These locations are renowned, but they are in difficulty."
Beginning in 2023, more than 150 of these locations have ceased operations – roughly 16% of the whole industry in the UK.
Over the past year, top acts like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to help venues survive, by applying a minor surcharge to their ticket prices, which benefits local stages.
He also joined in, collecting more than £100,000 on his live tour to assist 38 small stages across England, Scotland, and Wales.
The donation supported spaces that were facing potential shutdown due to challenges arising from floods, fire incidents and bereavements, as well as regulatory hurdles, court cases and neighbor objections.
Additional spaces received financial assistance in improving facilities and gear that directly benefitted musicians and concertgoers.
"The notion that money from concerts in big venues backs the independent spots, where it all starts for performers like me, is just logical," Fender has said.
Fender is among several artists to donate his Mercury Prize funds to charitable organizations.
Back when the band received the trophy in the year 1996 for their record Different Class, frontman Jarvis Cocker declared that the act would donate their winnings to the organization War Child.
In 2002, artist Ms Dynamite split her bounty across multiple good causes, including the NSPCC and a charity for Sickle Cell.
"And I donated a grand to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was growing up and they required updated gear," she shared with outlets.
Two years ago, they gave their funds to the community center that developed their act, in addition to other grassroots music organisations.
Also the 1994 recipients they contributed their winnings to a multiple sclerosis charity after a close contact was found to have the illness.
"Receiving the award was quite enough," said artist the singer. "The money was the extra but we didn't need the cherry, because we had the main prize. So our success touched the lives of others."
Recently, the Music Venues Trust shared it had rescued several grassroots venues in that region, by transferring them to local control.
The first in the city and The Croft in Bristol were bought under the Own Our Venues initiative, which is supported by Arts Council England and supporters who acquire "ownership units" in the venues.