The artist has given the full amount of his £25,000 honor cash to the Music Venues Trust, which operates to preserve the UK's grassroots music venues.
He was given the cheque on October 16 as his third album People Watching was declared the best record of the past year.
Fender has opted to donate the funds to the MVT, in appreciation of the vital role local spots played in his beginning days.
"I couldn't be pursuing my current career if it hadn't been for all the shows I performed around the North East, and elsewhere, when I was just getting going," said Fender. "These locations are legendary, but they are struggling."
Since the start of 2023, over 150 of these locations have shut down – approximately 16% of the total UK scene.
In the last year, top acts such as Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the MVT in its efforts to help venues survive, by including a modest fee to their admission fees, which benefits independent venues.
He also participated, collecting over £100k on his live tour to help numerous grassroots venues across England, Scotland, and Wales.
The donation assisted spaces that were confronting potential shutdown due to difficulties arising from floods, blazes and personal losses, as well as permit problems, court cases and neighbor objections.
Other venues were granted financial assistance in modernizing amenities and gear that directly benefitted artists and concertgoers.
"The concept that revenue from concerts in large arenas helps the smaller venues, where it all starts for artists like me, is just sensible," Fender has stated.
He is among several artists to contribute his Mercury Prize prize money to charitable organizations.
When they received the award in the year 1996 for their release the album, frontman Cocker declared that the group would donate their cash to the non-profit War Child.
In 2002, musician the artist divided her award across multiple organizations, like the children's charity and a Sickle Cell charity.
"I also gave a thousand pounds to Highgate Newtown, to their classes, because I trained in gymnastics when I was growing up and they needed new equipment," she told outlets.
Two years ago, they donated their winnings to the local youth club that nurtured their act, alongside other local music groups.
Additionally the 1994 recipients the group donated their award to a multiple sclerosis charity after a acquaintance was diagnosed the disease.
"Winning was quite enough," said vocalist Heather Small. "The money was the extra but we could do without the cherry, because we had the cake. So our victory impacted somebody else's life."
Recently, the Music Venues Trust announced it had protected a couple of small stages in south-east England, by transferring them to local control.
The first in that area and The Croft in that location were acquired under the community ownership scheme, which is funded by a national body and music fans who acquire "ownership units" in the properties.