The star has donated the complete sum of his £25,000 award prize money to the Music Venues Trust, which functions to preserve the UK's grassroots music venues.
He was given the prize on 16 October as his latest record the album was chosen as the best record of the past year.
The musician has opted to hand the money over to the trust, in recognition of the crucial part small stages played in his initial steps.
"I couldn't be pursuing this success if it hadn't been for all the gigs I performed around the North East, and elsewhere, when I was just getting going," remarked the artist. "These spaces are renowned, but they are struggling."
From early 2023 onward, at least 150 of these spaces have shut down – about one-sixth of the entire UK sector.
Recently, major artists such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its efforts to help venues survive, by applying a modest fee to their admission fees, which supports independent venues.
He also took part, generating over £100k on his live tour to help 38 local spots across England, Scotland, and Wales.
The donation assisted venues that were facing potential shutdown due to difficulties arising from water damage, fire incidents and family tragedies, as well as permit problems, conflicts and noise complaints.
Other venues obtained funding support in improving infrastructure and technical equipment that helped musicians and concertgoers.
"The notion that money from performances in major spaces backs the smaller venues, where it begins for artists like me, is just common sense," the star has stated.
Fender is among several artists to contribute his Mercury Prize funds to worthy causes.
Back when Pulp earned the prize in the mid-90s for their album the album, vocalist Jarvis Cocker announced that the act would contribute their cash to the charity the charity.
During 2002, musician she shared her prize among multiple good causes, such as the NSPCC and a Sickle Cell charity.
"Additionally, I donated a grand to Highgate Newtown, to their classes, because I practiced gymnastics when I was younger and they lacked new equipment," Ms Dynamite told the media.
Two years ago, they contributed their winnings to the community center that developed their act, in addition to other local music groups.
And winners that year they gave their winnings to a MS organization after a close contact was identified with the disease.
"Receiving the award was quite enough," stated vocalist Small. "The prize was the extra but we didn't require the cherry, because we had the cake. So our victory impacted the lives of others."
Last week, the Music Venues Trust revealed it had saved a couple of grassroots venues in the South East, by bringing them into local control.
The Joiners in that area and the other in that location were acquired under the Own Our Venues program, which is supported by a national body and music fans who purchase "shares" in the buildings.