The star has handed over the complete sum of his £25,000 award cash to the Music Venues Trust, which works to preserve the Britain's independent live music spots.
The star was awarded the award on October 16 as his third album People Watching was chosen as the best record of the last 12 months.
He has opted to donate the funds to the Music Venues Trust, in appreciation of the essential function local spots played in his initial steps.
"I wouldn't be doing what I am doing today if it hadn't been for all the performances I did around the area, and elsewhere, when I was beginning," said Fender. "These venues are renowned, but they are struggling."
Since the start of 2023, more than 150 of these spaces have ceased operations – about one-sixth of the whole industry in the UK.
Recently, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its attempts to keep the scene afloat, by including a minor surcharge to their ticket prices, which goes to help smaller concert halls.
He also participated, collecting more than £100,000 on his recent tour to assist thirty-eight local spots across England, Scotland, and Wales.
These funds helped locations that were facing possible closure due to issues stemming from floods, fire incidents and bereavements, as well as licensing issues, court cases and sound issues.
Additional spaces obtained monetary aid in improving infrastructure and gear that positively impacted musicians and audiences.
"The concept that funds from concerts in large arenas supports the smaller venues, where it kicks off for artists like me, is just common sense," the star has commented.
The musician is not the first artist to contribute his award prize money to worthy causes.
Back when Pulp earned the trophy in the year 1996 for their album their work, vocalist Cocker announced that the group would donate their winnings to the charity War Child.
In 2002, rapper and singer the artist split her award among several good causes, such as the NSPCC and a Sickle Cell charity.
"Additionally, I gave a thousand pounds to the center, to their gymnastics program, because I did gymnastics when I was younger and they lacked new equipment," the artist told the media.
Previously, the band donated their winnings to the local youth club that developed their group, as well as other local music groups.
And winners that year M People contributed their winnings to a multiple sclerosis charity after a close contact was identified with the illness.
"Winning was quite enough," remarked vocalist the singer. "The prize was the cherry on top but we didn't require the bonus, because we had the cake. So our victory impacted another person's life."
In the past week, the Music Venues Trust shared it had rescued two grassroots venues in south-east England, by placing them under public stewardship.
One venue in Southampton and The Croft in that location were acquired under the Own Our Venues program, which is funded by Arts Council England and enthusiasts who acquire "ownership units" in the buildings.