The artist has handed over the full amount of his £25k award cash to the trust for venues, which works to save the UK's small concert spaces.
The star was presented with the cheque on mid-October as his latest record his work was chosen as the outstanding release of the last 12 months.
He has chosen to hand the money over to the trust, in appreciation of the essential function local spots played in his beginning days.
"I wouldn't be doing my current career if it hadn't been for all the shows I did around the North East, and further afield, when I was starting out," said Fender. "These spaces are iconic, but they are facing challenges."
Since the start of 2023, more than 150 of these venues have shut down – roughly 16 percent of the whole industry in the UK.
Recently, well-known musicians like Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its efforts to keep the scene afloat, by adding a minor surcharge to their ticket prices, which goes to help smaller concert halls.
He also took part, generating over £100k on his 2024 arena tour to help thirty-eight local spots across the UK.
These funds supported venues that were confronting imminent closure due to difficulties stemming from flooding, fires and personal losses, as well as licensing issues, court cases and sound issues.
Some locations received monetary aid in modernizing facilities and technical equipment that helped performers and concertgoers.
"The concept that money from concerts in large arenas backs the smaller venues, where it all starts for artists like me, is just logical," the star has commented.
He is far from the only musician to donate his Mercury Prize prize money to good deeds.
When they earned the prize in 1996 for their album Different Class, frontman Cocker stated that the act would give their prize money to the charity War Child.
In 2002, artist she split her award between several charities, like the NSPCC and a charity for Sickle Cell.
"I also gave a grand to my local community centre, to their gymnastics program, because I practiced gymnastics when I was younger and they lacked updated gear," Ms Dynamite shared with the media.
Previously, they contributed their prize money to the youth organization that nurtured their band, in addition to other grassroots music organisations.
Also winners that year they donated their award to a multiple sclerosis charity after a friend was found to have the illness.
"Receiving the award was ample," remarked singer Small. "The money was the extra but we could do without the extra, because we had the main prize. So our success affected somebody else's life."
Last week, the trust announced it had saved several small stages in that region, by transferring them to public stewardship.
The Joiners in the city and the second in the city were acquired under the community ownership program, which is funded by Arts Council England and supporters who purchase "stakes" in the buildings.
