The star has handed over the full amount of his £25k award winnings to the Music Venues Trust, which operates to preserve the Britain's small music venues.
The star was awarded the award on 16 October as his latest record People Watching was named the top album of the last 12 months.
Fender has chosen to donate the funds to the trust, in recognition of the vital role grassroots venues played in his early career.
"I personally wouldn't be doing this success if it wasn't for all the shows I played around the North East, and further afield, when I was starting out," said Fender. "These locations are iconic, but they are struggling."
Since the start of 2023, over 150 of these venues have shut down – roughly 16% of the total UK scene.
Over the past year, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its initiatives to keep the scene afloat, by including a small levy to their admission fees, which benefits independent venues.
He also participated, raising more than £100,000 on his recent tour to help 38 grassroots venues across England, Scotland, and Wales.
The money supported spaces that were facing possible closure due to difficulties caused by floods, blazes and family tragedies, as well as regulatory hurdles, legal disputes and noise complaints.
Some locations were granted funding support in modernizing infrastructure and gear that directly benefitted performers and concertgoers.
"The idea that revenue from shows in large arenas backs the smaller venues, where it begins for performers like me, is just common sense," Fender has stated.
Fender is among several artists to give his honor funds to charitable organizations.
In they received the prize in the mid-90s for their album their work, frontman Jarvis Cocker stated that the group would donate their winnings to the non-profit War Child.
During 2002, rapper and singer the artist divided her bounty between a few good causes, like the NSPCC and a Sickle Cell charity.
"And I contributed a grand to my local community centre, to their classes, because I practiced gymnastics when I was growing up and they lacked new equipment," Ms Dynamite told the media.
Previously, the band gave their funds to the community center that developed their act, alongside other independent music bodies.
And the 1994 recipients M People gave their winnings to a charity for MS after a friend was identified with the condition.
"Winning was sufficient," stated singer Small. "The money 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."
Recently, the MVT revealed it had saved two small stages in south-east England, by transferring them to public stewardship.
One venue in the city and the other in Bristol were acquired under the Own Our Venues initiative, which is funded by the arts council and music fans who purchase "shares" in the buildings.
