The artist has handed over the entirety of his £25,000 award prize money to the MVT, which works to preserve the UK's grassroots live music spots.
The star was awarded the prize on mid-October as his new release his work was declared the best record of the past year.
He has chosen to give the cash to the Music Venues Trust, in recognition of the vital role small stages played in his beginning days.
"I would not have achieved this success if it weren't for all the performances I did around the region, and further afield, when I was beginning," stated the artist. "These venues are iconic, but they are struggling."
Since the start of 2023, more than 150 of these venues have permanently closed – about 16 percent of the whole industry in the UK.
Over the past year, major artists including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its efforts to support the industry, by applying a small levy to their ticket costs, which supports smaller concert halls.
Fender also participated, collecting more than £100,000 on his 2024 arena tour to support thirty-eight small stages across England, Scotland, and Wales.
The donation supported locations that were confronting possible closure due to issues caused by flooding, fires and personal losses, as well as regulatory hurdles, court cases and neighbor objections.
Additional spaces received funding support in modernizing facilities and sound and lighting systems that helped artists and concertgoers.
"The concept that revenue from shows in large arenas supports the independent spots, where it kicks off for musicians like me, is just logical," Fender has said.
He is among several artists to give his Mercury Prize prize money to charitable organizations.
When Pulp earned the trophy in the mid-90s for their album their work, frontman the singer declared that the group would donate their winnings to the non-profit War Child.
During 2002, artist Ms Dynamite split her prize across several charities, including the NSPCC and a Sickle Cell charity.
"And I gave a grand to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was growing up and they lacked better apparatus," she told a publication.
Two years ago, Ezra Collective donated their funds to the youth organization that developed their act, as well as other grassroots music organisations.
Also 1994 winners M People donated their winnings to a charity for MS after a acquaintance was diagnosed the disease.
"The victory was quite enough," remarked singer the singer. "The cash was the cherry on top but we could do without the extra, because we had the main prize. So our winning touched somebody else's life."
Recently, the trust announced it had saved several grassroots venues in that region, by placing them under community ownership.
The first in the city and The Croft in the city were purchased under the public acquisition initiative, which is funded by Arts Council England and supporters who buy "ownership units" in the buildings.
