The star has donated the entirety of his £25k honor cash to the MVT, which functions to save the Britain's small concert spaces.
The star was presented with the prize on October 16 as his third album People Watching was named the outstanding release of the last 12 months.
The musician has opted to hand the money over to the Music Venues Trust, in appreciation of the vital role grassroots venues had in his early career.
"I personally wouldn't be doing what I am doing today if it hadn't been for all the shows I did around the area, and beyond, when I was starting out," stated the artist. "These spaces are renowned, but they are struggling."
Since the start of 2023, over 150 of these spaces have shut down – roughly one-sixth of the whole industry in the UK.
Over the past year, well-known musicians including the band Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the trust in its efforts to support the industry, by applying a minor surcharge to their ticket costs, which supports local stages.
Fender also joined in, collecting in excess of £100,000 on his recent tour to assist numerous small stages across the UK.
The donation supported venues that were facing imminent closure due to difficulties arising from water damage, fire incidents and bereavements, as well as licensing issues, legal disputes and neighbor objections.
Other venues were granted funding support in upgrading infrastructure and sound and lighting systems that directly benefitted musicians and fans.
"The idea that revenue from concerts in big venues backs the smaller venues, where it kicks off for artists like me, is just sensible," the star has said.
Fender is among several artists to donate his award funds to good deeds.
In they won the prize in the year 1996 for their release the album, frontman Jarvis Cocker announced that the group would donate their winnings to the non-profit the charity.
During 2002, rapper and singer the artist split her bounty among a few organizations, like the children's charity and a Sickle Cell charity.
"And I contributed a thousand pounds to the center, to their gymnastics class, because I trained in gymnastics when I was growing up and they lacked new equipment," Ms Dynamite shared with a publication.
Two years ago, they donated their prize money to the local youth club that developed their act, alongside other grassroots music organisations.
Additionally the 1994 recipients they contributed their winnings to a charity for MS after a acquaintance was found to have the disease.
"Receiving the award was sufficient," said artist Small. "The money was the extra but we didn't require the extra, because we had the cake. So our victory touched another person's life."
In the past week, the MVT revealed it had protected two grassroots venues in that region, by placing them under local control.
The first in Southampton and the second in the city were acquired under the public acquisition program, which is supported by a national body and enthusiasts who acquire "stakes" in the properties.