The artist has handed over the complete sum of his £25,000 award prize money to the Music Venues Trust, which works to protect the UK's independent concert spaces.
He was presented with the cheque on October 16 as his new release his work was named the best record of the past year.
Fender has opted to give the cash to the trust, in appreciation of the crucial part local spots fulfilled in his early career.
"I couldn't be pursuing my current career if it wasn't for all the shows I played around the area, and elsewhere, when I was starting out," stated Fender. "These venues are iconic, but they are facing challenges."
Since the start of 2023, more than 150 of these locations have permanently closed – roughly one-sixth of the entire UK sector.
Over the past year, top acts such as Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to help venues survive, by including a small levy to their admission fees, which supports local stages.
He also took part, raising more than £100,000 on his recent tour to support 38 local spots across the UK.
The donation helped spaces that were dealing with imminent closure due to issues arising from flooding, fires and bereavements, as well as regulatory hurdles, court cases and sound issues.
Additional spaces were granted funding support in upgrading infrastructure and technical equipment that positively impacted performers and audiences.
"The idea that money from performances in big venues backs the local stages, where it begins for performers like me, is just logical," Fender has said.
Fender is far from the only musician to give his Mercury Prize winnings to good deeds.
Back when Pulp received the trophy in the mid-90s for their record the album, vocalist Jarvis Cocker declared that the act would donate their cash to the charity War Child.
In 2002, artist she split her bounty across a few organizations, such as the NSPCC and a Sickle Cell charity.
"Additionally, I gave a £1,000 to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was younger and they required updated gear," she explained to the media.
Two years ago, the band donated their prize money to the local youth club that nurtured their act, as well as other independent music bodies.
Additionally the 1994 recipients they contributed their prize to a charity for MS after a acquaintance was found to have the disease.
"Winning was ample," remarked singer Heather Small. "The cash was the bonus but we didn't need the cherry, because we had the main prize. So our success affected another person's life."
Last week, the trust announced it had rescued several local spots in the South East, by placing them under public stewardship.
One venue in the city and The Croft in Bristol were purchased under the community ownership initiative, which is backed by a national body and enthusiasts who buy "stakes" in the venues.