The artist has handed over the entirety of his £25,000 honor cash to the MVT, which functions to protect the UK's grassroots concert spaces.
The star was presented with the prize on mid-October as his latest record his work was declared the best record of the past year.
The musician has chosen to hand the money over to the Music Venues Trust, in acknowledgment of the essential function local spots played in his initial steps.
"I personally would not have achieved my current career if it hadn't been for all the gigs I performed around the area, and further afield, when I was beginning," remarked the artist. "These spaces are iconic, but they are in difficulty."
From early 2023 onward, more than 150 of these venues have shut down – about 16 percent of the whole industry in the UK.
Over the past year, major artists including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its initiatives to keep the scene afloat, by adding a minor surcharge to their admission fees, which benefits smaller concert halls.
He also took part, collecting more than £100,000 on his recent tour to help numerous local spots across the UK.
The money helped spaces that were facing possible closure due to issues arising from water damage, blazes and personal losses, as well as licensing issues, court cases and neighbor objections.
Additional spaces received funding support in upgrading amenities and technical equipment that directly benefitted artists and concertgoers.
"The notion that money from performances in big venues helps the independent spots, where it all starts for performers like me, is just common sense," Fender has said.
Fender is among several artists to donate his honor funds to charitable organizations.
Back when Pulp received the trophy in the mid-90s for their record Different Class, frontman the singer declared that the band would contribute their cash to the organization War Child.
In 2002, rapper and singer she divided her award among several charities, including the NSPCC and a Sickle Cell organization.
"And I donated a grand to the center, to their gymnastics class, because I practiced gymnastics when I was growing up and they needed better apparatus," Ms Dynamite told outlets.
Previously, they gave their funds to the community center that developed their group, in addition to other local music groups.
And 1994 winners the group gave their award to a multiple sclerosis charity after a acquaintance was found to have the disease.
"Receiving the award was quite enough," remarked vocalist Heather Small. "The prize was the extra but we could do without the bonus, because we had the main prize. So our winning touched somebody else's life."
In the past week, the trust announced it had protected several small stages in that region, by transferring them to local control.
The Joiners in the city and The Croft in Bristol were purchased under the Own Our Venues initiative, which is backed by a national body and supporters who purchase "shares" in the properties.