The star has given the full amount of his £25,000 award cash to the Music Venues Trust, which works to protect the United Kingdom's independent live music spots.
Fender was awarded the cheque on October 16 as his third album People Watching was chosen as the best record of the last 12 months.
The musician has opted to hand the money over to the trust, in recognition of the vital role grassroots venues fulfilled in his beginning days.
"As an artist wouldn't be doing what I am doing today if it hadn't been for all the shows I played around the area, and further afield, when I was just getting going," remarked Fender. "These spaces are iconic, but they are in difficulty."
Since the start of 2023, at least 150 of these venues have permanently closed – roughly 16 percent of the entire UK sector.
In the last year, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its efforts to support the industry, by including a small levy to their admission fees, which supports local stages.
He also joined in, raising over £100k on his recent tour to support numerous small stages across the UK.
These funds helped locations that were confronting possible closure due to issues arising from floods, blazes and family tragedies, as well as licensing issues, legal disputes and sound issues.
Additional spaces received financial assistance in modernizing amenities and gear that positively impacted performers and concertgoers.
"The idea that money from shows in big venues helps the independent spots, where it begins for performers like me, is just sensible," Fender has said.
He is far from the only musician to give his honor funds to worthy causes.
When they received the prize in the year 1996 for their release the album, vocalist Cocker declared that the act would give their winnings to the non-profit the charity.
In 2002, artist Ms Dynamite split her award between several charities, including the NSPCC and a Sickle Cell organization.
"I also donated a thousand pounds to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was growing up and they needed new equipment," she explained to a publication.
Two years ago, they gave their prize money to the local youth club that developed their act, as well as other independent music bodies.
And 1994 winners M People contributed their winnings to a multiple sclerosis charity after a friend was identified with the condition.
"Winning was sufficient," said singer Small. "The prize was the extra but we didn't require the extra, because we had the cake. So our success affected another person's life."
Last week, the MVT revealed it had saved several grassroots venues in the South East, by bringing them into community ownership.
One venue in the city and the second in Bristol were bought under the community ownership initiative, which is supported by Arts Council England and supporters who buy "ownership units" in the buildings.
