The star has handed over the full amount of his £25k award cash to the MVT, which operates to preserve the Britain's small live music spots.
Fender was awarded the award on 16 October as his new release People Watching was chosen as the outstanding release of the past year.
The musician has chosen to hand the money over to the Music Venues Trust, in appreciation of the essential function grassroots venues fulfilled in his beginning days.
"I personally couldn't be pursuing this success if it wasn't for all the gigs I performed around the North East, and beyond, when I was starting out," said the artist. "These venues are iconic, but they are in difficulty."
Beginning in 2023, more than 150 of these locations have permanently closed – about 16 percent of the total UK scene.
Over the past year, well-known musicians such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its efforts to help venues survive, by adding a minor surcharge to their ticket prices, which benefits smaller concert halls.
He also participated, generating more than £100,000 on his live tour to help 38 grassroots venues across England, Scotland, and Wales.
The donation helped spaces that were dealing with possible closure due to difficulties caused by floods, fires and family tragedies, as well as regulatory hurdles, court cases and noise complaints.
Some locations were granted funding support in upgrading infrastructure and gear that helped artists and fans.
"The concept that money from shows in major spaces supports the local stages, where it all starts for performers like me, is just common sense," Fender has commented.
He is not the first artist to give his honor funds to charitable organizations.
When Pulp received the prize in 1996 for their album their work, lead singer Jarvis Cocker announced that the band would give their winnings to the non-profit War Child.
In 2002, artist Ms Dynamite divided her prize between a few organizations, like the NSPCC and a Sickle Cell charity.
"Additionally, I donated a thousand pounds to my local community centre, to their classes, because I trained in gymnastics when I was growing up and they needed updated gear," Ms Dynamite explained to outlets.
Two years ago, Ezra Collective donated their winnings to the youth organization that supported their act, in addition to other local music groups.
And winners that year they donated their winnings to a MS organization after a close contact was diagnosed the disease.
"Receiving the award was quite enough," said artist Heather Small. "The prize was the cherry on top but we didn't need the bonus, because we had the honor. So our success touched somebody else's life."
Last week, the MVT revealed it had rescued two local spots in south-east England, by placing them under public stewardship.
The first in Southampton and the second in Bristol were purchased under the community ownership program, which is backed by the arts council and enthusiasts who acquire "shares" in the venues.
