The artist has handed over the entirety of his twenty-five thousand pound award winnings to the Music Venues Trust, which works to protect the United Kingdom's grassroots concert spaces.
He was given the cheque on October 16 as his new release People Watching was declared the outstanding release of the previous year.
He has chosen to give the cash to the trust, in recognition of the vital role grassroots venues fulfilled in his early career.
"As an artist would not have achieved what I am doing today if it hadn't been for all the gigs I played around the area, and further afield, when I was just getting going," remarked Fender. "These locations are iconic, but they are facing challenges."
Beginning in 2023, over 150 of these spaces have permanently closed – roughly 16 percent of the total UK scene.
In the last year, major artists like Pulp, Coldplay, the singer Katy Perry and Sheeran have all supported the trust in its efforts to help venues survive, by adding a minor surcharge to their ticket costs, which supports independent venues.
He also took part, collecting more than £100,000 on his live tour to help numerous grassroots venues across the UK.
The donation assisted venues that were dealing with potential shutdown due to difficulties stemming from flooding, blazes and family tragedies, as well as licensing issues, legal disputes and sound issues.
Some locations received financial assistance in improving facilities and technical equipment that positively impacted performers and concertgoers.
"The notion that money from shows in major spaces helps the local stages, where it kicks off for artists like me, is just common sense," Fender has commented.
He is among several artists to donate his Mercury Prize winnings to charitable organizations.
Back when the band won the award in the year 1996 for their release the album, frontman the singer announced that the band would contribute their winnings to the charity War Child.
During 2002, rapper and singer the artist divided her bounty between multiple organizations, such as the NSPCC and a Sickle Cell organization.
"And I donated a thousand pounds to Highgate Newtown, to their classes, because I trained in gymnastics when I was younger and they lacked updated gear," she told a publication.
In recent years, they contributed their funds to the local youth club that nurtured their group, in addition to other local music groups.
And the 1994 recipients M People contributed their winnings to a multiple sclerosis charity after a close contact was found to have the condition.
"Receiving the award was sufficient," said vocalist the singer. "The money was the bonus but we didn't need the extra, because we had the honor. So our victory impacted the lives of others."
Recently, the MVT shared it had rescued two local spots in south-east England, by bringing them into community ownership.
One venue in Southampton and the other in that location were purchased under the community ownership scheme, which is supported by a national body and supporters who purchase "stakes" in the buildings.