The artist has handed over the complete sum of his £25,000 honor cash to the Music Venues Trust, which functions to protect the Britain's small music venues.
He was presented with the prize on mid-October as his third album People Watching was named the top album of the past year.
He has decided to hand the money over to the trust, in appreciation of the essential function local spots had in his early career.
"I personally wouldn't be doing what I am doing today if it wasn't for all the gigs I performed around the North East, and further afield, when I was starting out," stated Fender. "These venues are renowned, but they are facing challenges."
Beginning in 2023, at least 150 of these venues have permanently closed – approximately one-sixth of the entire UK sector.
Over the past year, major artists including the band Pulp, Coldplay, Katy Perry and Sheeran have all backed the Music Venues Trust in its initiatives to keep the scene afloat, by including a minor surcharge to their admission fees, which benefits independent venues.
He also joined in, raising more than £100,000 on his recent tour to support 38 grassroots venues across the UK.
The money helped venues that were facing potential shutdown due to challenges stemming from water damage, blazes and family tragedies, as well as permit problems, court cases and sound issues.
Some locations were granted financial assistance in improving infrastructure and technical equipment that positively impacted performers and fans.
"The concept that money from performances in major spaces backs the independent spots, where it all starts for musicians like me, is just logical," Fender has commented.
The musician is not the first artist to donate his Mercury Prize funds to charitable organizations.
When Pulp won the award in the mid-90s for their record their work, lead singer Cocker stated that the act would contribute their cash to the non-profit War Child.
In 2002, rapper and singer the artist split her award between a few organizations, like the NSPCC and a charity for Sickle Cell.
"Additionally, I contributed a thousand pounds to the center, to their gymnastics program, because I trained in gymnastics when I was growing up and they lacked new equipment," the artist told a publication.
Two years ago, Ezra Collective gave their funds to the local youth club that supported their group, alongside other local music groups.
Additionally winners that year the group contributed their award to a charity for MS after a friend was diagnosed the disease.
"Winning was ample," stated artist Small. "The cash was the bonus but we could do without the bonus, because we had the cake. So our success impacted another person's life."
Recently, the MVT revealed it had rescued several grassroots venues in south-east England, by transferring them to public stewardship.
The first in the city and the second in that location were bought under the public acquisition program, which is supported by a national body and enthusiasts who acquire "ownership units" in the properties.
