The artist has given the full amount of his £25k honor cash to the MVT, which works to save the UK's grassroots music venues.
The star was presented with the award on mid-October as his new release his work was named the top album of the last 12 months.
He has decided to hand the money over to the trust, in appreciation of the essential function local spots had in his early career.
"As an artist couldn't be pursuing what I am doing today if it weren't for all the performances I did around the region, and further afield, when I was starting out," said the artist. "These venues are renowned, but they are struggling."
From early 2023 onward, over 150 of these venues have shut down – about one-sixth of the entire UK sector.
Recently, major artists like Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to support the industry, by including a minor surcharge to their ticket prices, which supports smaller concert halls.
Fender also participated, collecting more than £100,000 on his recent tour to support 38 local spots across Britain.
The money supported locations that were facing possible closure due to issues arising from flooding, fire incidents and personal losses, as well as permit problems, court cases and neighbor objections.
Additional spaces obtained funding support in modernizing infrastructure and sound and lighting systems that directly benefitted performers and audiences.
"The idea that funds from performances in major spaces helps the independent spots, where it kicks off for performers like me, is just common sense," the star has said.
Fender is among several artists to donate his award funds to worthy causes.
When Pulp earned the award in 1996 for their release Different Class, vocalist the singer stated that the group would donate their prize money to the charity War Child.
That year, rapper and singer she shared her bounty between several charities, including the NSPCC and a Sickle Cell organization.
"I also contributed a grand to Highgate Newtown, to their classes, because I trained in gymnastics when I was younger and they required updated gear," Ms Dynamite told the media.
Previously, Ezra Collective gave their funds to the local youth club that supported their group, alongside other independent music bodies.
Additionally 1994 winners M People donated their award to a MS organization after a close contact was identified with the condition.
"The victory was quite enough," remarked singer the singer. "The cash was the bonus but we could do without the bonus, because we had the honor. So our winning affected the lives of others."
In the past week, the trust revealed it had protected two grassroots venues in the South East, by transferring them to public stewardship.
The first in Southampton and The Croft in Bristol were bought under the public acquisition scheme, which is supported by the arts council and supporters who buy "shares" in the properties.
