The star has handed over the full amount of his twenty-five thousand pound honor cash to the Music Venues Trust, which functions to save the UK's small concert spaces.
Fender was awarded the cheque on 16 October as his new release his work was chosen as the best record of the previous year.
He has decided to hand the money over to the Music Venues Trust, in recognition of the vital role small stages fulfilled in his early career.
"As an artist would not have achieved this success if it hadn't been for all the gigs I did around the North East, and elsewhere, when I was starting out," remarked the artist. "These venues are iconic, but they are facing challenges."
Beginning in 2023, over 150 of these venues have shut down – approximately 16 percent of the entire UK sector.
In the last year, well-known musicians including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its attempts to support the industry, by including a modest fee to their ticket costs, which benefits local stages.
Fender also took part, generating in excess of £100,000 on his 2024 arena tour to help numerous grassroots venues across Britain.
These funds helped locations that were dealing with potential shutdown due to challenges stemming from flooding, blazes and family tragedies, as well as regulatory hurdles, court cases and noise complaints.
Additional spaces were granted financial assistance in improving amenities and technical equipment that helped artists and concertgoers.
"The notion that money from concerts in large arenas helps the local stages, where it kicks off for musicians like me, is just logical," Fender has commented.
Fender is among several artists to contribute his Mercury Prize winnings to charitable organizations.
In the band earned the prize in the year 1996 for their release Different Class, lead singer Jarvis Cocker declared that the act would donate their winnings to the charity War Child.
In 2002, artist she divided her prize between several organizations, like the NSPCC and a Sickle Cell charity.
"And I donated a grand to my local community centre, to their gymnastics class, because I did gymnastics when I was a child and they lacked new equipment," Ms Dynamite shared with the media.
In recent years, they donated their funds to the community center that developed their group, alongside other local music groups.
Also winners that year M People gave their winnings to a charity for MS after a close contact was found to have the disease.
"Receiving the award was ample," remarked singer Small. "The prize was the extra but we could do without the bonus, because we had the cake. So our winning touched the lives of others."
In the past week, the Music Venues Trust announced it had protected two local spots in the South East, by transferring them to community ownership.
The first in that area and the second in that location were acquired under the community ownership initiative, which is backed by Arts Council England and enthusiasts who purchase "shares" in the properties.
