The star has handed over the entirety of his £25k award cash to the MVT, which functions to preserve the United Kingdom's small concert spaces.
The star was awarded the cheque on October 16 as his third album his work was chosen as the outstanding release of the past year.
He has decided to donate the funds to the trust, in acknowledgment of the essential function grassroots venues played in his initial steps.
"I personally couldn't be pursuing this success if it hadn't been for all the performances I did around the region, and beyond, when I was beginning," stated the artist. "These locations are legendary, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have shut down – roughly 16 percent of the total UK scene.
In the last year, major artists including Pulp, Coldplay, Katy Perry and Sheeran have all supported the MVT in its attempts to help venues survive, by applying a modest fee to their ticket prices, which benefits local stages.
Fender also participated, collecting in excess of £100,000 on his recent tour to assist numerous small stages across England, Scotland, and Wales.
These funds helped venues that were facing imminent closure due to issues caused by floods, fires and personal losses, as well as permit problems, conflicts and noise complaints.
Additional spaces obtained funding support in modernizing amenities and sound and lighting systems that helped artists and concertgoers.
"The idea that money from performances in major spaces helps the smaller venues, where it begins for artists like me, is just sensible," the star has stated.
The musician is not the first artist to contribute his Mercury Prize prize money to good deeds.
Back when Pulp earned the trophy in the mid-90s for their album the album, lead singer Jarvis Cocker declared that the act would contribute their winnings to the charity the charity.
That year, artist the artist divided her prize among several good causes, including the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a £1,000 to the center, to their gymnastics program, because I practiced gymnastics when I was younger and they required new equipment," the artist told the media.
Previously, they contributed their prize money to the youth organization that supported their band, in addition to other independent music bodies.
And the 1994 recipients M People gave their prize to a multiple sclerosis charity after a acquaintance was found to have the condition.
"Winning was ample," stated singer the singer. "The money was the cherry on top but we didn't need the extra, because we had the honor. So our winning affected somebody else's life."
Last week, the MVT revealed it had protected a couple of grassroots venues in south-east England, by bringing them into local control.
The first in the city and the other in Bristol were bought under the community ownership scheme, which is supported by the arts council and supporters who buy "stakes" in the venues.