The artist has donated the entirety of his £25k honor cash to the trust for venues, which functions to preserve the UK's grassroots music venues.
He was awarded the prize on 16 October as his latest record People Watching was chosen as the best record of the last 12 months.
The musician has decided to give the cash to the Music Venues Trust, in acknowledgment of the essential function small stages played in his initial steps.
"I couldn't be pursuing what I am doing today if it hadn't been for all the shows I played around the area, and elsewhere, when I was starting out," said Fender. "These venues are iconic, but they are struggling."
Since the start of 2023, more than 150 of these locations have ceased operations – approximately 16 percent of the total UK scene.
Over the past year, major artists like Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its attempts to help venues survive, by adding a modest fee to their ticket prices, which benefits independent venues.
He also participated, generating over £100k on his 2024 arena tour to help thirty-eight local spots across the UK.
The donation assisted venues that were dealing with imminent closure due to challenges caused by water damage, fires and bereavements, as well as licensing issues, legal disputes and sound issues.
Other venues received monetary aid in improving amenities and gear that positively impacted performers and audiences.
"The concept that funds from concerts in big venues helps the independent spots, where it all starts for musicians like me, is just sensible," Fender has stated.
The musician is far from the only musician to contribute his Mercury Prize funds to good deeds.
When the band received the prize in 1996 for their release their work, frontman Cocker announced that the band would contribute their winnings to the charity the charity.
During 2002, musician Ms Dynamite split her prize between multiple charities, including the NSPCC and a charity for Sickle Cell.
"I also gave a grand to my local community centre, to their gymnastics program, because I did gymnastics when I was a child and they required better apparatus," Ms Dynamite explained to the media.
Two years ago, they donated their funds to the local youth club that nurtured their band, in addition to other local music groups.
Additionally 1994 winners M People donated their prize to a multiple sclerosis charity after a acquaintance was found to have the condition.
"Receiving the award was sufficient," said vocalist Small. "The prize was the cherry on top but we didn't require the cherry, because we had the honor. So our winning impacted the lives of others."
In the past week, the trust revealed it had saved two small stages in south-east England, by bringing them into public stewardship.
The Joiners in Southampton and The Croft in the city were acquired under the Own Our Venues program, which is supported by Arts Council England and enthusiasts who acquire "ownership units" in the properties.
