The artist has given the entirety of his £25k honor cash to the MVT, which operates to protect the United Kingdom's small concert spaces.
The star was awarded the cheque on 16 October as his new release People Watching was chosen as the outstanding release of the last 12 months.
He has chosen to hand the money over to the Music Venues Trust, in acknowledgment of the essential function small stages played in his early career.
"As an artist couldn't be pursuing what I am doing today if it weren't for all the performances I performed around the area, and beyond, when I was just getting going," remarked Fender. "These locations are iconic, but they are facing challenges."
Beginning in 2023, at least 150 of these venues have permanently closed – approximately one-sixth of the total UK scene.
In the last year, top acts including Pulp, Coldplay, the singer Katy Perry and Sheeran have all aided the Music Venues Trust in its initiatives to keep the scene afloat, by adding a small levy to their ticket prices, which supports smaller concert halls.
He also joined in, collecting more than £100,000 on his 2024 arena tour to help 38 local spots across the UK.
These funds supported locations that were confronting potential shutdown due to challenges arising from floods, fire incidents and bereavements, as well as regulatory hurdles, legal disputes and noise complaints.
Other venues obtained monetary aid in upgrading facilities and gear that directly benefitted musicians and fans.
"The concept that money from concerts in major spaces backs the local stages, where it kicks off for musicians like me, is just logical," the star has stated.
The musician is far from the only musician to donate his Mercury Prize funds to charitable organizations.
Back when Pulp earned the award in the mid-90s for their release their work, frontman Cocker announced that the group would donate their winnings to the organization War Child.
During 2002, rapper and singer she divided her award across a few charities, like the children's charity and a Sickle Cell organization.
"Additionally, I donated a grand to Highgate Newtown, to their gymnastics program, because I did gymnastics when I was growing up and they needed new equipment," the artist explained to a publication.
Two years ago, they donated their winnings to the youth organization that nurtured their band, alongside other local music groups.
Additionally winners that year M People donated their award to a MS organization after a acquaintance was diagnosed the disease.
"The victory was sufficient," said vocalist Small. "The money was the cherry on top but we could do without the bonus, because we had the main prize. So our success affected another person's life."
Last week, the MVT revealed it had saved several grassroots venues in south-east England, by transferring them to public stewardship.
The Joiners in the city and The Croft in that location were bought under the community ownership program, which is funded by the arts council and music fans who buy "shares" in the venues.
