The artist has handed over the entirety of his £25,000 award cash to the trust for venues, which functions to protect the UK's grassroots music venues.
The star was awarded the prize on October 16 as his new release the album was declared the outstanding release of the past year.
Fender has decided to hand the money over to the trust, in recognition of the vital role local spots had in his initial steps.
"As an artist would not have achieved this success if it hadn't been for all the gigs I did around the area, and elsewhere, when I was beginning," stated Fender. "These venues are iconic, but they are facing challenges."
Beginning in 2023, more than 150 of these locations have shut down – about 16% of the total UK scene.
Recently, well-known musicians like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its initiatives to support the industry, by applying a modest fee to their admission fees, which supports independent venues.
He also participated, raising more than £100,000 on his recent tour to assist 38 local spots across England, Scotland, and Wales.
The donation helped spaces that were facing potential shutdown due to challenges arising from floods, fire incidents and family tragedies, as well as permit problems, conflicts and neighbor objections.
Other venues were granted monetary aid in upgrading infrastructure and sound and lighting systems that directly benefitted musicians and concertgoers.
"The concept that money from concerts in major spaces helps the independent spots, where it all starts for performers like me, is just logical," Fender has said.
Fender is among several artists to give his Mercury Prize winnings to worthy causes.
When Pulp earned the prize in 1996 for their album the album, lead singer Jarvis Cocker declared that the act would donate their cash to the non-profit War Child.
In 2002, artist Ms Dynamite shared her prize between several good causes, including the NSPCC and a charity for Sickle Cell.
"And I contributed a grand to my local community centre, to their gymnastics program, because I practiced gymnastics when I was a child and they lacked new equipment," she shared with a publication.
Previously, the band contributed their winnings to the community center that supported their group, as well as other local music groups.
And 1994 winners they donated their winnings to a MS organization after a acquaintance was diagnosed the illness.
"The victory was ample," stated singer the singer. "The money was the cherry on top but we didn't need the cherry, because we had the cake. So our victory touched somebody else's life."
In the past week, the Music Venues Trust announced it had saved several local spots in the South East, by bringing them into local control.
The first in Southampton and the other in the city were acquired under the community ownership scheme, which is funded by a national body and enthusiasts who buy "shares" in the properties.