The star has handed over the complete sum of his £25k honor cash to the MVT, which operates to preserve the UK's small concert spaces.
The star was presented with the prize on mid-October as his latest record the album was chosen as the best record of the past year.
The musician has decided to donate the funds to the MVT, in appreciation of the vital role local spots fulfilled in his initial steps.
"I personally couldn't be pursuing my current career if it weren't for all the gigs I performed around the region, and elsewhere, when I was beginning," stated the artist. "These locations are iconic, but they are in difficulty."
Beginning in 2023, over 150 of these locations have permanently closed – roughly one-sixth of the entire UK sector.
Over the past year, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its efforts to support the industry, by adding a minor surcharge to their ticket costs, which goes to help smaller concert halls.
Fender also participated, raising over £100k on his live tour to assist numerous local spots across the UK.
The money helped spaces that were confronting potential shutdown due to difficulties caused by flooding, fire incidents and family tragedies, as well as permit problems, legal disputes and sound issues.
Additional spaces obtained funding support in upgrading infrastructure and sound and lighting systems that directly benefitted performers and fans.
"The notion that revenue from performances in large arenas backs the independent spots, where it all starts for musicians like me, is just common sense," Fender has said.
The musician is far from the only musician to contribute his award winnings to charitable organizations.
When the band won the prize in 1996 for their release their work, lead singer Cocker declared that the band would donate their prize money to the non-profit War Child.
That year, artist the artist divided her bounty among several charities, such as the NSPCC and a Sickle Cell organization.
"I also donated a £1,000 to my local community centre, to their gymnastics program, because I trained in gymnastics when I was a child and they required better apparatus," the artist told the media.
Previously, Ezra Collective contributed their prize money to the youth organization that developed their band, alongside other grassroots music organisations.
Additionally 1994 winners M People contributed their award to a multiple sclerosis charity after a close contact was identified with the condition.
"Winning was ample," said vocalist Heather Small. "The prize was the cherry on top but we didn't need the extra, because we had the main prize. So our success impacted somebody else's life."
Last week, the trust shared it had rescued two local spots in that region, by bringing them into community ownership.
The first in that area and the second in the city were bought under the community ownership program, which is funded by the arts council and enthusiasts who acquire "stakes" in the buildings.
