The artist has donated the full amount of his £25,000 honor cash to the Music Venues Trust, which works to preserve the UK's grassroots concert spaces.
The star was given the cheque on October 16 as his latest record his work was chosen as the top album of the previous year.
He has opted to hand the money over to the MVT, in acknowledgment of the essential function grassroots venues had in his beginning days.
"I personally wouldn't be doing what I am doing today if it wasn't for all the gigs I played around the region, and elsewhere, when I was just getting going," stated the artist. "These spaces are renowned, but they are in difficulty."
Since the start of 2023, more than 150 of these spaces have permanently closed – roughly 16 percent of the total UK scene.
Over the past year, major artists such as Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its attempts to help venues survive, by applying a small levy to their ticket costs, which benefits independent venues.
He also participated, collecting in excess of £100,000 on his recent tour to assist 38 grassroots venues across the UK.
These funds assisted spaces that were facing imminent closure due to challenges arising from floods, blazes and bereavements, as well as permit problems, legal disputes and sound issues.
Other venues were granted monetary aid in upgrading facilities and sound and lighting systems that directly benefitted performers and audiences.
"The concept that revenue from shows in big venues supports the local stages, where it begins for artists like me, is just logical," Fender has said.
He is far from the only musician to contribute his Mercury Prize funds to good deeds.
When the band earned the trophy in the year 1996 for their album the album, frontman Jarvis Cocker stated that the act would donate their prize money to the organization War Child.
During 2002, rapper and singer the artist shared her bounty across a few good causes, including the NSPCC and a Sickle Cell organization.
"I also contributed a thousand pounds to Highgate Newtown, to their classes, because I did gymnastics when I was a child and they needed new equipment," Ms Dynamite explained to the media.
Previously, they contributed their winnings to the community center that supported their band, alongside other local music groups.
And the 1994 recipients M People gave their prize to a multiple sclerosis charity after a close contact was identified with the condition.
"Receiving the award was quite enough," said singer the singer. "The money was the extra but we could do without the cherry, because we had the honor. So our winning touched somebody else's life."
Recently, the MVT shared it had rescued several grassroots venues in that region, by placing them under community ownership.
One venue in the city and The Croft in the city were acquired under the Own Our Venues program, which is supported by a national body and supporters who buy "shares" in the buildings.
