The star has donated the full amount of his £25,000 Mercury Prize cash to the MVT, which operates to protect the UK's independent concert spaces.
Fender was presented with the prize on mid-October as his new release his work was named the outstanding release of the last 12 months.
Fender has opted to hand the money over to the Music Venues Trust, in acknowledgment of the crucial part small stages fulfilled in his early career.
"I couldn't be pursuing what I am doing today if it wasn't for all the performances I performed around the area, and further afield, when I was just getting going," said the artist. "These spaces are iconic, but they are in difficulty."
From early 2023 onward, at least 150 of these spaces have permanently closed – about 16 percent of the whole industry in the UK.
Over the past year, major artists such as the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to help venues survive, by applying a modest fee to their ticket costs, which goes to help smaller concert halls.
Fender also took part, raising more than £100,000 on his live tour to support thirty-eight grassroots venues across Britain.
The money supported venues that were dealing with potential shutdown due to challenges arising from flooding, fire incidents and bereavements, as well as permit problems, court cases and neighbor objections.
Other venues received funding support in modernizing amenities and technical equipment that helped artists and concertgoers.
"The concept that money from performances in major spaces supports the independent spots, where it all starts for artists like me, is just logical," the star has said.
Fender is not the first artist to contribute his award winnings to worthy causes.
When Pulp received the trophy in the mid-90s for their release Different Class, frontman the singer announced that the act would give their prize money to the organization War Child.
That year, rapper and singer the artist shared her prize across a few organizations, including the NSPCC and a Sickle Cell charity.
"I also donated a thousand pounds to my local community centre, to their classes, because I trained in gymnastics when I was younger and they lacked better apparatus," she explained to outlets.
Two years ago, they gave their winnings to the community center that nurtured their band, as well as other local music groups.
Additionally 1994 winners M People gave their prize to a charity for MS after a close contact was identified with the disease.
"The victory was ample," said singer the singer. "The money was the cherry on top but we didn't require the cherry, because we had the cake. So our success affected somebody else's life."
Last week, the trust shared it had saved a couple of local spots in that region, by bringing them into local control.
The Joiners in that area and the second in that location were bought under the community ownership scheme, which is funded by Arts Council England and supporters who purchase "ownership units" in the properties.