The artist has given the entirety of his £25,000 award prize money to the trust for venues, which functions to preserve the United Kingdom's small music venues.
He was awarded the prize on 16 October as his third album his work was chosen as the top album of the past year.
Fender has opted to give the cash to the trust, in recognition of the crucial part grassroots venues fulfilled in his early career.
"I couldn't be pursuing what I am doing today if it wasn't for all the performances I did around the region, and beyond, when I was beginning," remarked Fender. "These spaces are legendary, but they are struggling."
From early 2023 onward, at least 150 of these venues have permanently closed – about 16% of the total UK scene.
In the last year, top acts including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to keep the scene afloat, by adding a small levy to their admission fees, which benefits local stages.
Fender also participated, raising more than £100,000 on his live tour to support numerous local spots across England, Scotland, and Wales.
The donation helped spaces that were facing possible closure due to difficulties arising from water damage, fires and personal losses, as well as permit problems, court cases and sound issues.
Additional spaces were granted monetary aid in modernizing infrastructure and technical equipment that directly benefitted artists and audiences.
"The idea that funds from performances in large arenas helps the local stages, where it begins for artists like me, is just sensible," the star has said.
Fender is not the first artist to contribute his Mercury Prize winnings to charitable organizations.
In Pulp received the award in the mid-90s for their album their work, lead singer Cocker declared that the band would donate their winnings to the organization the charity.
That year, musician she shared her prize between a few good causes, including the NSPCC and a charity for Sickle Cell.
"I also contributed a thousand pounds to the center, to their gymnastics program, because I trained in gymnastics when I was younger and they needed better apparatus," she told the media.
Two years ago, they gave their winnings to the local youth club that developed their act, as well as other grassroots music organisations.
And 1994 winners M People contributed their winnings to a charity for MS after a close contact was found to have the condition.
"The victory was ample," remarked singer Small. "The prize was the extra but we could do without the extra, because we had the main prize. So our victory impacted somebody else's life."
In the past week, the trust revealed it had rescued a couple of local spots in south-east England, by bringing them into public stewardship.
The first in the city and The Croft in Bristol were purchased under the community ownership initiative, which is supported by a national body and supporters who buy "ownership units" in the venues.
