The star has given the full amount of his twenty-five thousand pound honor cash to the MVT, which functions to save the UK's grassroots concert spaces.
He was awarded the prize on 16 October as his new release the album was declared the best record of the previous year.
Fender has chosen to hand the money over to the trust, in acknowledgment of the essential function small stages had in his beginning days.
"I would not have achieved what I am doing today if it weren't for all the gigs I did around the North East, and further afield, when I was starting out," remarked the artist. "These spaces are renowned, but they are facing challenges."
Since the start of 2023, at least 150 of these locations have ceased operations – about 16% of the total UK scene.
In the last year, well-known musicians like Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all backed the MVT in its initiatives to keep the scene afloat, by adding a minor surcharge to their admission fees, which goes to help independent venues.
He also participated, generating more than £100,000 on his live tour to assist numerous small stages across England, Scotland, and Wales.
The donation supported locations that were facing potential shutdown due to difficulties arising from floods, fire incidents and family tragedies, as well as regulatory hurdles, legal disputes and noise complaints.
Other venues received monetary aid in improving amenities and gear that positively impacted musicians and fans.
"The concept that money from shows in major spaces backs the independent spots, where it kicks off for artists like me, is just logical," Fender has said.
He is far from the only musician to donate his Mercury Prize prize money to charitable organizations.
Back when Pulp earned the award in the mid-90s for their record Different Class, frontman Cocker declared that the group would contribute their cash to the non-profit War Child.
During 2002, musician the artist split her award across several charities, such as the children's charity and a charity for Sickle Cell.
"And I gave a £1,000 to Highgate Newtown, to their gymnastics program, because I did gymnastics when I was a child and they lacked updated gear," the artist explained to the media.
Two years ago, they contributed their funds to the youth organization that supported their band, alongside other grassroots music organisations.
And 1994 winners the group gave their prize to a multiple sclerosis charity after a close contact was diagnosed the condition.
"The victory was sufficient," remarked singer Small. "The prize was the cherry on top but we could do without the extra, because we had the main prize. So our success affected another person's life."
Recently, the MVT shared it had saved two small stages in the South East, by bringing them into public stewardship.
The first in Southampton and the second in the city were purchased under the Own Our Venues program, which is supported by the arts council and supporters who buy "ownership units" in the buildings.
