The artist has handed over the full amount of his twenty-five thousand pound award cash to the MVT, which functions to protect the UK's grassroots concert spaces.
Fender was awarded the award on 16 October as his third album People Watching was named the top album of the last 12 months.
The musician has chosen to donate the funds to the MVT, in appreciation of the vital role local spots played in his beginning days.
"As an artist couldn't be pursuing this success if it wasn't for all the performances I played around the region, and further afield, when I was starting out," stated the artist. "These venues are renowned, but they are struggling."
Since the start of 2023, over 150 of these spaces have permanently closed – about one-sixth of the whole industry in the UK.
Over the past year, major artists such as Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its efforts to keep the scene afloat, by adding a modest fee to their ticket costs, which supports local stages.
Fender also participated, collecting more than £100,000 on his live tour to help 38 grassroots venues across Britain.
The donation helped venues that were facing possible closure due to issues arising from water damage, fires and family tragedies, as well as regulatory hurdles, court cases and neighbor objections.
Some locations obtained financial assistance in modernizing facilities and sound and lighting systems that positively impacted artists and fans.
"The notion that funds from performances in large arenas helps the smaller venues, where it kicks off for musicians like me, is just sensible," Fender has commented.
Fender is among several artists to donate his Mercury Prize prize money to worthy causes.
In they earned the award in the mid-90s for their album their work, frontman the singer announced that the act would contribute their cash to the non-profit War Child.
In 2002, rapper and singer the artist split her bounty between a few good causes, including the NSPCC and a Sickle Cell charity.
"And I contributed a thousand pounds to my local community centre, to their classes, because I practiced gymnastics when I was younger and they needed updated gear," Ms Dynamite told the media.
Previously, Ezra Collective donated their prize money to the youth organization that nurtured their act, as well as other local music groups.
Additionally the 1994 recipients they gave their winnings to a MS organization after a friend was diagnosed the disease.
"Winning was ample," said artist Small. "The prize was the extra but we could do without the cherry, because we had the honor. So our victory impacted the lives of others."
Last week, the MVT shared it had saved several small stages in the South East, by bringing them into local control.
One venue in that area and The Croft in Bristol were acquired under the public acquisition scheme, which is backed by the arts council and supporters who purchase "ownership units" in the properties.
