The star has donated the full amount of his twenty-five thousand pound Mercury Prize cash to the MVT, which operates to protect the United Kingdom's small live music spots.
He was given the award on 16 October as his latest record People Watching was declared the top album of the last 12 months.
He has opted to donate the funds to the Music Venues Trust, in acknowledgment of the crucial part small stages fulfilled in his initial steps.
"As an artist wouldn't be doing this success if it hadn't been for all the shows I did around the region, and beyond, when I was starting out," stated the artist. "These venues are renowned, but they are in difficulty."
Beginning in 2023, at least 150 of these venues have shut down – about 16% of the whole industry in the UK.
In the last year, top acts including Pulp, the group Coldplay, Katy Perry and Sheeran have all backed the trust in its efforts to keep the scene afloat, by including a small levy to their ticket prices, which benefits smaller concert halls.
Fender also took part, collecting over £100k on his recent tour to assist thirty-eight local spots across the UK.
The money assisted locations that were facing possible closure due to issues stemming from flooding, blazes and bereavements, as well as permit problems, legal disputes and sound issues.
Some locations were granted monetary aid in modernizing facilities and technical equipment that positively impacted artists and concertgoers.
"The idea that revenue from shows in large arenas helps the smaller venues, where it all starts for performers like me, is just sensible," Fender has commented.
Fender is among several artists to give his honor prize money to charitable organizations.
Back when Pulp earned the trophy in the mid-90s for their release the album, lead singer Cocker stated that the group would donate their prize money to the organization the charity.
In 2002, musician Ms Dynamite split her award across several good causes, like the NSPCC and a Sickle Cell charity.
"And I donated a grand to the center, to their classes, because I did gymnastics when I was growing up and they needed better apparatus," Ms Dynamite shared with outlets.
In recent years, Ezra Collective donated their winnings to the local youth club that nurtured their band, as well as other grassroots music organisations.
Additionally the 1994 recipients M People contributed their winnings to a multiple sclerosis charity after a acquaintance was found to have the condition.
"The victory was sufficient," stated vocalist Small. "The cash was the cherry on top but we didn't need the extra, because we had the honor. So our winning affected another person's life."
Last week, the trust revealed it had rescued several small stages in the South East, by placing them under public stewardship.
One venue in the city and the second in that location were bought under the Own Our Venues initiative, which is funded by the arts council and supporters who acquire "stakes" in the venues.
