The star has given the full amount of his £25k honor winnings to the trust for venues, which operates to preserve the UK's independent live music spots.
Fender was presented with the cheque on 16 October as his latest record People Watching was declared the top album of the past year.
The musician has chosen to hand the money over to the trust, in appreciation of the crucial part local spots played in his early career.
"I wouldn't be doing my current career if it hadn't been for all the performances I performed around the region, and beyond, when I was beginning," said the artist. "These locations are renowned, but they are facing challenges."
Beginning in 2023, more than 150 of these venues have permanently closed – approximately one-sixth of the entire UK sector.
Recently, top acts such as the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its attempts to support the industry, by applying a small levy to their ticket prices, which goes to help local stages.
He also joined in, raising over £100k on his recent tour to assist 38 local spots across Britain.
The donation supported locations that were dealing with imminent closure due to challenges stemming from flooding, fires and family tragedies, as well as permit problems, court cases and neighbor objections.
Other venues were granted funding support in improving infrastructure and gear that helped musicians and audiences.
"The notion that funds from performances in big venues backs the local stages, where it all starts for performers like me, is just logical," Fender has commented.
He is among several artists to contribute his Mercury Prize funds to charitable organizations.
When they earned the award in the mid-90s for their record their work, vocalist the singer announced that the act would contribute their cash to the non-profit War Child.
In 2002, artist she shared her award among a few good causes, like the NSPCC and a Sickle Cell organization.
"Additionally, I contributed a thousand pounds to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was younger and they required new equipment," she shared with outlets.
In recent years, the band contributed their prize money to the youth organization that supported their band, in addition to other local music groups.
And 1994 winners the group donated their prize to a MS organization after a friend was identified with the illness.
"The victory was quite enough," stated artist Heather Small. "The cash was the cherry on top but we didn't require the bonus, because we had the cake. So our success impacted the lives of others."
In the past week, the Music Venues Trust shared it had rescued a couple of grassroots venues in the South East, by bringing them into public stewardship.
The first in the city and the second in Bristol were acquired under the Own Our Venues initiative, which is supported by Arts Council England and enthusiasts who acquire "ownership units" in the buildings.
