The star has handed over the complete sum of his £25k award winnings to the trust for venues, which operates to protect the UK's independent music venues.
The star was given the cheque on 16 October as his new release his work was named the top album of the past year.
He has chosen to hand the money over to the Music Venues Trust, in appreciation of the essential function grassroots venues fulfilled in his beginning days.
"I wouldn't be doing this success if it weren't for all the performances I performed around the area, and elsewhere, when I was just getting going," said Fender. "These spaces are iconic, but they are in difficulty."
Since the start of 2023, more than 150 of these locations have permanently closed – roughly 16 percent of the total UK scene.
In the last year, well-known musicians like the band Pulp, Coldplay, Katy Perry and Sheeran have all supported the Music Venues Trust in its initiatives to support the industry, by including a minor surcharge to their ticket costs, which goes to help local stages.
Fender also took part, generating over £100k on his live tour to assist thirty-eight small stages across the UK.
The donation supported venues that were confronting imminent closure due to issues arising from water damage, fires and family tragedies, as well as permit problems, court cases and noise complaints.
Additional spaces received financial assistance in improving facilities and technical equipment that helped artists and audiences.
"The concept that funds from concerts in major spaces supports the local stages, where it begins for artists like me, is just sensible," the star has said.
The musician is not the first artist to give his Mercury Prize prize money to charitable organizations.
In the band won the trophy in the year 1996 for their release their work, lead singer Cocker announced that the act would give their winnings to the charity War Child.
In 2002, artist Ms Dynamite split her award between several organizations, like the children's charity and a Sickle Cell charity.
"And I contributed a grand to my local community centre, to their gymnastics program, because I practiced gymnastics when I was younger and they required updated gear," Ms Dynamite shared with the media.
Two years ago, the band gave their funds to the youth organization that supported their act, alongside other independent music bodies.
Also the 1994 recipients M People donated their prize to a multiple sclerosis charity after a friend was identified with the condition.
"Winning was sufficient," said vocalist the singer. "The money was the extra but we didn't require the extra, because we had the cake. So our success impacted somebody else's life."
In the past week, the trust announced it had saved several grassroots venues in that region, by placing them under local control.
The Joiners in that area and the other in that location were purchased under the Own Our Venues program, which is funded by Arts Council England and enthusiasts who buy "shares" in the buildings.