The star has given the entirety of his £25,000 award winnings to the Music Venues Trust, which operates to save the United Kingdom's small live music spots.
He was presented with the award on mid-October as his new release the album was chosen as the outstanding release of the past year.
The musician has chosen to give the cash to the trust, in appreciation of the vital role small stages fulfilled in his beginning days.
"As an artist wouldn't be doing what I am doing today if it wasn't for all the shows I performed around the region, and further afield, when I was starting out," stated Fender. "These venues are renowned, but they are struggling."
From early 2023 onward, at least 150 of these venues have permanently closed – approximately one-sixth of the entire UK sector.
In the last year, major artists like Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all backed the MVT in its efforts to keep the scene afloat, by including a modest fee to their ticket prices, which goes to help smaller concert halls.
Fender also took part, collecting in excess of £100,000 on his live tour to help numerous small stages across Britain.
These funds supported spaces that were dealing with possible closure due to challenges arising from flooding, fire incidents and personal losses, as well as permit problems, conflicts and neighbor objections.
Other venues received funding support in modernizing infrastructure and technical equipment that positively impacted performers and audiences.
"The concept that money from performances in major spaces backs the smaller venues, where it all starts for performers like me, is just logical," the star has stated.
Fender is not the first artist to contribute his Mercury Prize funds to charitable organizations.
Back when they received the prize in 1996 for their release their work, frontman Jarvis Cocker announced that the band would donate their winnings to the non-profit the charity.
During 2002, rapper and singer the artist divided her award among a few good causes, including the children's charity and a charity for Sickle Cell.
"I also contributed a £1,000 to the center, to their classes, because I practiced gymnastics when I was a child and they required better apparatus," the artist shared with a publication.
In recent years, Ezra Collective donated their funds to the community center that nurtured their band, as well as other independent music bodies.
Also the 1994 recipients the group gave their prize to a multiple sclerosis charity after a close contact was identified with the condition.
"Winning was sufficient," remarked vocalist Small. "The cash was the bonus but we didn't need the extra, because we had the honor. So our success impacted another person's life."
Recently, the Music Venues Trust revealed it had rescued two small stages in that region, by bringing them into community ownership.
The Joiners in that area and the second in the city were acquired under the community ownership scheme, which is supported by a national body and music fans who purchase "shares" in the properties.