The artist has handed over the complete sum of his £25,000 award prize money to the trust for venues, which works to preserve the UK's small live music spots.
The star was given the prize on mid-October as his new release his work was chosen as the outstanding release of the past year.
The musician has opted to give the cash to the Music Venues Trust, in appreciation of the vital role small stages played in his beginning days.
"I personally would not have achieved what I am doing today if it wasn't for all the gigs I played around the region, and elsewhere, when I was beginning," stated the artist. "These spaces are renowned, but they are in difficulty."
From early 2023 onward, over 150 of these spaces have ceased operations – about 16 percent of the entire UK sector.
Over the past year, top acts such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its efforts to keep the scene afloat, by adding a modest fee to their ticket costs, which benefits smaller concert halls.
Fender also participated, generating more than £100,000 on his recent tour to help 38 local spots across the UK.
The donation assisted spaces that were dealing with potential shutdown due to difficulties stemming from water damage, fires and family tragedies, as well as permit problems, conflicts and noise complaints.
Other venues were granted monetary aid in modernizing infrastructure and sound and lighting systems that helped musicians and audiences.
"The idea that money from shows in major spaces supports the independent spots, where it all starts for artists like me, is just logical," Fender has commented.
The musician is among several artists to contribute his Mercury Prize prize money to good deeds.
When the band received the trophy in 1996 for their record the album, frontman the singer stated that the band would contribute their winnings to the organization War Child.
In 2002, rapper and singer Ms Dynamite split her bounty across a few charities, such as the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a grand to the center, to their gymnastics class, because I trained in gymnastics when I was growing up and they required better apparatus," she shared with the media.
Previously, the band contributed their winnings to the youth organization that developed their group, in addition to other local music groups.
Also the 1994 recipients the group donated their award to a multiple sclerosis charity after a acquaintance was found to have the illness.
"Winning was quite enough," stated singer Small. "The money was the cherry on top but we could do without the cherry, because we had the main prize. So our success affected another person's life."
Last week, the trust announced it had rescued several local spots in south-east England, by bringing them into community ownership.
One venue in that area and the second in that location were bought under the community ownership scheme, which is supported by Arts Council England and supporters who buy "shares" in the buildings.