The star has handed over the full amount of his twenty-five thousand pound honor cash to the MVT, which functions to save the Britain's grassroots concert spaces.
Fender was given the prize on 16 October as his new release People Watching was named the top album of the previous year.
The musician has opted to hand the money over to the trust, in recognition of the vital role grassroots venues fulfilled in his initial steps.
"I personally couldn't be pursuing this success if it weren't for all the shows I performed around the North East, and beyond, when I was beginning," remarked the artist. "These spaces are legendary, but they are in difficulty."
From early 2023 onward, more than 150 of these spaces have ceased operations – approximately 16 percent of the whole industry in the UK.
In the last year, major artists including Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the Music Venues Trust in its initiatives to keep the scene afloat, by applying a modest fee to their ticket costs, which benefits local stages.
Fender also took part, raising in excess of £100,000 on his recent tour to support thirty-eight small stages across England, Scotland, and Wales.
The donation helped locations that were confronting potential shutdown due to difficulties caused by water damage, fire incidents and bereavements, as well as licensing issues, conflicts and sound issues.
Other venues obtained funding support in modernizing infrastructure and gear that helped artists and concertgoers.
"The idea that revenue from shows in large arenas backs the independent spots, where it kicks off for artists like me, is just sensible," Fender has said.
The musician is far from the only musician to donate his award funds to worthy causes.
When Pulp earned the trophy in the mid-90s for their album Different Class, frontman Cocker declared that the band would contribute their prize money to the charity War Child.
That year, rapper and singer Ms Dynamite split her prize across multiple organizations, like the children's charity and a charity for Sickle Cell.
"Additionally, I gave a grand to the center, to their gymnastics class, because I did gymnastics when I was younger and they needed updated gear," she told the media.
Two years ago, they gave their winnings to the youth organization that nurtured their act, as well as other grassroots music organisations.
Also 1994 winners the group gave their winnings to a MS organization after a acquaintance was identified with the condition.
"Receiving the award was sufficient," said artist Small. "The money was the extra but we could do without the bonus, because we had the main prize. So our winning touched the lives of others."
Last week, the MVT revealed it had rescued two local spots in the South East, by placing them under community ownership.
The Joiners in the city and The Croft in Bristol were bought under the Own Our Venues program, which is supported by a national body and supporters who acquire "shares" in the properties.