The artist has given the full amount of his £25k honor winnings to the Music Venues Trust, which functions to preserve the United Kingdom's grassroots music venues.
Fender was presented with the cheque on 16 October as his new release People Watching was named the top album of the last 12 months.
He has chosen to hand the money over to the trust, in recognition of the vital role small stages had in his early career.
"I wouldn't be doing what I am doing today if it hadn't been for all the shows I played around the North East, and further afield, when I was starting out," stated the artist. "These locations are iconic, but they are in difficulty."
Beginning in 2023, more than 150 of these spaces have permanently closed – roughly one-sixth of the total UK scene.
Over the past year, major artists such as Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its initiatives to keep the scene afloat, by applying a modest fee to their ticket costs, which goes to help independent venues.
He also joined in, generating more than £100,000 on his live tour to support thirty-eight grassroots venues across England, Scotland, and Wales.
The money supported spaces that were confronting possible closure due to challenges caused by water damage, blazes and bereavements, as well as regulatory hurdles, legal disputes and noise complaints.
Additional spaces obtained monetary aid in modernizing infrastructure and sound and lighting systems that directly benefitted artists and concertgoers.
"The notion that funds from concerts in big venues backs the local stages, where it begins for musicians like me, is just logical," the star has said.
The musician is not the first artist to donate his Mercury Prize funds to worthy causes.
In Pulp earned the award in the mid-90s for their release Different Class, vocalist Jarvis Cocker stated that the band would give their cash to the non-profit the charity.
In 2002, artist Ms Dynamite divided her prize across several charities, like the NSPCC and a Sickle Cell organization.
"I also contributed a grand to the center, to their gymnastics program, because I trained in gymnastics when I was growing up and they required new equipment," Ms Dynamite shared with outlets.
In recent years, they donated their winnings to the local youth club that developed their group, alongside other local music groups.
And the 1994 recipients the group donated their award to a MS organization after a acquaintance was found to have the disease.
"Receiving the award was ample," stated vocalist Heather Small. "The cash was the cherry on top but we didn't require the bonus, because we had the cake. So our victory impacted somebody else's life."
Recently, the MVT revealed it had protected a couple of local spots in that region, by placing them under community ownership.
The Joiners in the city and The Croft in that location were purchased under the community ownership initiative, which is backed by the arts council and enthusiasts who buy "shares" in the buildings.