The star has given the complete sum of his £25k award prize money to the trust for venues, which functions to save the UK's independent live music spots.
Fender was given the award on 16 October as his latest record People Watching was named the best record of the previous year.
The musician has chosen to hand the money over to the Music Venues Trust, in appreciation of the crucial part small stages fulfilled in his beginning days.
"I personally wouldn't be doing this success if it hadn't been for all the gigs I performed around the region, and further afield, when I was just getting going," said Fender. "These locations are iconic, but they are facing challenges."
Beginning in 2023, at least 150 of these locations have ceased operations – roughly one-sixth of the total UK scene.
Over the past year, top acts such as Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its efforts to help venues survive, by applying a modest fee to their admission fees, which benefits independent venues.
He also joined in, collecting more than £100,000 on his recent tour to support 38 small stages across England, Scotland, and Wales.
The donation assisted locations that were confronting imminent closure due to difficulties stemming from water damage, fire incidents and family tragedies, as well as licensing issues, court cases and noise complaints.
Other venues were granted funding support in modernizing facilities and technical equipment that helped musicians and audiences.
"The idea that funds from concerts in large arenas backs the local stages, where it kicks off for artists like me, is just sensible," the star has commented.
He is among several artists to give his Mercury Prize winnings to charitable organizations.
In they received the trophy in 1996 for their album their work, lead singer Cocker announced that the band would give their prize money to the charity the charity.
In 2002, artist she divided her prize across a few good causes, such as the children's charity and a Sickle Cell organization.
"I also contributed a £1,000 to the center, to their gymnastics class, because I trained in gymnastics when I was a child and they required better apparatus," the artist told the media.
Two years ago, Ezra Collective donated their prize money to the community center that nurtured their group, in addition to other grassroots music organisations.
Additionally the 1994 recipients the group contributed their prize to a multiple sclerosis charity after a friend was diagnosed the illness.
"The victory was quite enough," remarked singer the singer. "The money was the extra but we didn't need the extra, because we had the cake. So our success affected somebody else's life."
Recently, the MVT revealed it had protected a couple of grassroots venues in south-east England, by bringing them into public stewardship.
One venue in that area and the other in Bristol were bought under the public acquisition scheme, which is funded by a national body and music fans who purchase "stakes" in the venues.