The star has donated the complete sum of his £25k award prize money to the Music Venues Trust, which operates to protect the UK's small concert spaces.
The star was given the award on mid-October as his new release People Watching was declared the outstanding release of the last 12 months.
The musician has opted to give the cash to the trust, in acknowledgment of the crucial part small stages had in his early career.
"I personally wouldn't be doing this success if it hadn't been for all the gigs I performed around the region, and beyond, when I was beginning," said Fender. "These spaces are legendary, but they are in difficulty."
Beginning in 2023, at least 150 of these venues have ceased operations – about 16 percent of the whole industry in the UK.
Over the past year, well-known musicians including the band Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all backed the MVT in its attempts to keep the scene afloat, by including a modest fee to their ticket prices, which benefits independent venues.
Fender also participated, generating over £100k on his recent tour to assist numerous grassroots venues across the UK.
These funds helped spaces that were dealing with possible closure due to issues caused by floods, blazes and family tragedies, as well as regulatory hurdles, legal disputes and neighbor objections.
Some locations received financial assistance in modernizing facilities and technical equipment that positively impacted performers and fans.
"The concept that money from performances in large arenas backs the local stages, where it all starts for musicians like me, is just sensible," the star has said.
Fender is among several artists to give his Mercury Prize funds to good deeds.
When the band won the trophy in 1996 for their record their work, vocalist the singer announced that the act would contribute their cash to the organization the charity.
During 2002, artist she divided her award across several organizations, including the NSPCC and a Sickle Cell organization.
"And I contributed a £1,000 to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was younger and they lacked new equipment," Ms Dynamite told a publication.
Previously, Ezra Collective gave their funds to the youth organization that developed their act, as well as other grassroots music organisations.
Also winners that year the group gave their prize to a MS organization after a friend was identified with the illness.
"Receiving the award was quite enough," remarked vocalist the singer. "The cash was the extra but we could do without the extra, because we had the honor. So our victory impacted the lives of others."
Recently, the MVT announced it had rescued two grassroots venues in south-east England, by bringing them into public stewardship.
One venue in Southampton and the other in the city were purchased under the public acquisition program, which is backed by the arts council and enthusiasts who purchase "shares" in the venues.
