The star has donated the full amount of his twenty-five thousand pound honor winnings to the MVT, which functions to save the Britain's small live music spots.
The star was presented with the award on October 16 as his new release his work was chosen as the best record of the previous year.
The musician has decided to donate the funds to the Music Venues Trust, in recognition of the essential function grassroots venues fulfilled in his beginning days.
"As an artist would not have achieved what I am doing today if it hadn't been for all the performances I performed around the region, and elsewhere, when I was starting out," remarked Fender. "These spaces are legendary, but they are struggling."
Since the start of 2023, more than 150 of these locations have permanently closed – about 16 percent of the entire UK sector.
In the last year, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its attempts to help venues survive, by applying a small levy to their ticket prices, which benefits smaller concert halls.
He also joined in, collecting in excess of £100,000 on his live tour to support thirty-eight grassroots venues across the UK.
The money assisted locations that were confronting imminent closure due to issues caused by floods, fire incidents and bereavements, as well as licensing issues, conflicts and neighbor objections.
Other venues obtained funding support in improving amenities and technical equipment that positively impacted performers and concertgoers.
"The notion that funds from performances in major spaces supports the smaller venues, where it all starts for musicians like me, is just sensible," Fender has stated.
He is among several artists to donate his Mercury Prize prize money to charitable organizations.
Back when the band received the prize in 1996 for their record Different Class, vocalist the singer stated that the band would contribute their cash to the charity War Child.
That year, musician the artist split her bounty among several charities, such as the children's charity and a Sickle Cell organization.
"And I gave a £1,000 to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was younger and they lacked updated gear," she shared with a publication.
Two years ago, they contributed their winnings to the local youth club that nurtured their band, alongside other grassroots music organisations.
And 1994 winners the group gave their award to a charity for MS after a close contact was diagnosed the illness.
"The victory was quite enough," stated singer Heather Small. "The money was the cherry on top but we didn't require the extra, because we had the main prize. So our victory affected the lives of others."
Last week, the MVT announced it had saved a couple of grassroots venues in the South East, by placing them under public stewardship.
The first in Southampton and the second in that location were purchased under the community ownership program, which is supported by Arts Council England and music fans who buy "ownership units" in the venues.