The artist has handed over the entirety of his £25,000 honor winnings to the trust for venues, which operates to save the Britain's independent live music spots.
He was awarded the award on mid-October as his third album People Watching was named the top album of the past year.
He has chosen to hand the money over to the Music Venues Trust, in acknowledgment of the essential function small stages had in his beginning days.
"I would not have achieved what I am doing today if it hadn't been for all the performances I performed around the region, and elsewhere, when I was beginning," remarked the artist. "These venues are legendary, but they are in difficulty."
Beginning in 2023, over 150 of these locations have permanently closed – about 16 percent of the total UK scene.
Over the past year, top acts like Pulp, Coldplay, Katy Perry and Sheeran have all supported the MVT in its attempts to support the industry, by applying a small levy to their admission fees, which benefits independent venues.
He also joined in, generating in excess of £100,000 on his 2024 arena tour to help numerous local spots across the UK.
The money supported spaces that were dealing with imminent closure due to challenges caused by water damage, fires and personal losses, as well as permit problems, conflicts and noise complaints.
Some locations were granted funding support in upgrading amenities and sound and lighting systems that directly benefitted musicians and audiences.
"The notion that funds from concerts in big venues helps the independent spots, where it all starts for artists like me, is just sensible," Fender has stated.
Fender is not the first artist to donate his award funds to good deeds.
When Pulp won the prize in the year 1996 for their album their work, frontman the singer declared that the act would give their cash to the non-profit War Child.
During 2002, musician Ms Dynamite divided her bounty across a few organizations, including the NSPCC and a charity for Sickle Cell.
"And I donated a £1,000 to Highgate Newtown, to their gymnastics program, because I did gymnastics when I was growing up and they needed updated gear," the artist told the media.
Two years ago, they donated their funds to the community center that supported their band, as well as other grassroots music organisations.
Also the 1994 recipients M People gave their prize to a charity for MS after a close contact was found to have the disease.
"The victory was sufficient," stated artist the singer. "The money was the bonus but we could do without the bonus, because we had the honor. So our success touched somebody else's life."
Recently, the trust revealed it had protected several grassroots venues in that region, by transferring them to community ownership.
One venue in the city and the second in that location were purchased under the Own Our Venues initiative, which is funded by a national body and enthusiasts who buy "stakes" in the venues.