The star has given the entirety of his £25,000 honor prize money to the trust for venues, which operates to preserve the Britain's independent music venues.
He was presented with the prize on October 16 as his latest record his work was chosen as the outstanding release of the past year.
The musician has chosen to hand the money over to the Music Venues Trust, in acknowledgment of the vital role local spots played in his early career.
"As an artist wouldn't be doing my current career if it wasn't for all the performances I performed around the North East, and further afield, when I was just getting going," said Fender. "These locations are legendary, but they are facing challenges."
From early 2023 onward, more than 150 of these venues have shut down – roughly 16% of the total UK scene.
In the last year, well-known musicians like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its attempts to keep the scene afloat, by adding a small levy to their admission fees, which goes to help local stages.
He also took part, raising more than £100,000 on his recent tour to support numerous local spots across England, Scotland, and Wales.
The donation supported spaces that were dealing with possible closure due to challenges stemming from flooding, blazes and bereavements, as well as licensing issues, legal disputes and neighbor objections.
Some locations obtained funding support in improving facilities and sound and lighting systems that directly benefitted musicians and audiences.
"The idea that money from concerts in major spaces backs the independent spots, where it begins for performers like me, is just common sense," Fender has stated.
He is not the first artist to contribute his Mercury Prize prize money to good deeds.
Back when Pulp won the trophy in the year 1996 for their record the album, lead singer Cocker announced that the band would contribute their prize money to the non-profit War Child.
In 2002, musician Ms Dynamite divided her prize between multiple charities, including the NSPCC and a Sickle Cell charity.
"I also donated a thousand pounds to my local community centre, to their gymnastics program, because I practiced gymnastics when I was growing up and they lacked better apparatus," Ms Dynamite shared with a publication.
Two years ago, the band donated their funds to the community center that supported their band, alongside other grassroots music organisations.
Also winners that year M People gave their winnings to a charity for MS after a friend was identified with the condition.
"Receiving the award was quite enough," remarked singer Small. "The money was the bonus but we didn't need the bonus, because we had the main prize. So our victory touched another person's life."
In the past week, the Music Venues Trust revealed it had rescued a couple of local spots in that region, by bringing them into public stewardship.
One venue in the city and The Croft in the city were acquired under the Own Our Venues scheme, which is supported by Arts Council England and music fans who acquire "shares" in the buildings.
