The star has handed over the full amount of his £25,000 award cash to the MVT, which operates to preserve the United Kingdom's independent concert spaces.
He was awarded the prize on mid-October as his latest record People Watching was chosen as the top album of the previous year.
Fender has chosen to donate the funds to the trust, in recognition of the vital role small stages had in his early career.
"As an artist couldn't be pursuing what I am doing today if it wasn't for all the shows I did around the North East, and beyond, when I was starting out," stated the artist. "These locations are renowned, but they are facing challenges."
Beginning in 2023, more than 150 of these venues have permanently closed – about one-sixth of the whole industry in the UK.
Over the past year, top acts including the band Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its efforts to support the industry, by including a small levy to their ticket costs, which benefits local stages.
Fender also took part, collecting in excess of £100,000 on his live tour to support thirty-eight small stages across England, Scotland, and Wales.
The money supported venues that were facing imminent closure due to issues caused by water damage, fires and family tragedies, as well as regulatory hurdles, legal disputes and sound issues.
Additional spaces were granted financial assistance in improving amenities and sound and lighting systems that helped artists and concertgoers.
"The notion that revenue from performances in big venues supports the smaller venues, where it all starts for performers like me, is just logical," Fender has commented.
He is not the first artist to give his award funds to good deeds.
Back when they earned the trophy in 1996 for their release Different Class, lead singer Cocker announced that the group would donate their winnings to the non-profit the charity.
That year, musician the artist divided her award among multiple charities, including the NSPCC and a Sickle Cell charity.
"And I contributed a grand to the center, to their gymnastics program, because I practiced gymnastics when I was growing up and they required new equipment," Ms Dynamite told outlets.
Previously, they donated their prize money to the community center that nurtured their act, in addition to other grassroots music organisations.
Also the 1994 recipients the group donated their prize to a charity for MS after a acquaintance was diagnosed the condition.
"Receiving the award was quite enough," stated artist Heather Small. "The prize was the bonus but we didn't need the bonus, because we had the cake. So our success impacted another person's life."
In the past week, the Music Venues Trust revealed it had rescued two grassroots venues in that region, by bringing them into local control.
One venue in the city and The Croft in the city were purchased under the public acquisition initiative, which is supported by the arts council and music fans who purchase "shares" in the venues.
