The artist has donated the full amount of his £25k Mercury Prize cash to the Music Venues Trust, which works to save the Britain's grassroots concert spaces.
He was awarded the prize on mid-October as his third album his work was named the outstanding release of the previous year.
He has chosen to hand the money over to the MVT, in appreciation of the vital role grassroots venues played in his beginning days.
"I couldn't be pursuing this success if it weren't for all the performances I played around the region, and further afield, when I was just getting going," said Fender. "These spaces are iconic, but they are struggling."
Beginning in 2023, more than 150 of these locations have ceased operations – about 16% of the total UK scene.
Recently, top acts including Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its efforts to support the industry, by including a minor surcharge to their admission fees, which goes to help local stages.
Fender also participated, generating more than £100,000 on his recent tour to help numerous small stages across the UK.
The donation assisted venues that were dealing with possible closure due to issues caused by water damage, fire incidents and bereavements, as well as licensing issues, legal disputes and noise complaints.
Some locations received financial assistance in improving infrastructure and gear that directly benefitted artists and concertgoers.
"The notion that money from performances in big venues helps the local stages, where it all starts for musicians like me, is just common sense," the star has stated.
He is among several artists to donate his honor prize money to good deeds.
In Pulp received the prize in the mid-90s for their record their work, lead singer Cocker declared that the group would give their cash to the organization the charity.
That year, musician the artist divided her bounty among several organizations, like the NSPCC and a Sickle Cell charity.
"And I contributed a grand to Highgate Newtown, to their classes, because I trained in gymnastics when I was a child and they needed updated gear," the artist explained to the media.
Previously, Ezra Collective contributed their prize money to the local youth club that developed their group, in addition to other local music groups.
Also the 1994 recipients M People donated their winnings to a multiple sclerosis charity after a close contact was diagnosed the disease.
"Receiving the award was sufficient," stated singer Heather Small. "The prize was the bonus but we didn't need the bonus, because we had the main prize. So our winning affected the lives of others."
Recently, the Music Venues Trust announced it had saved a couple of small stages in south-east England, by transferring them to community ownership.
One venue in the city and the second in Bristol were purchased under the community ownership initiative, which is backed by the arts council and supporters who buy "ownership units" in the venues.