The star has given the complete sum of his £25k honor cash to the Music Venues Trust, which works to protect the United Kingdom's small music venues.
The star was given the prize on mid-October as his latest record the album was chosen as the top album of the last 12 months.
He has decided to donate the funds to the MVT, in acknowledgment of the crucial part small stages played in his early career.
"I personally couldn't be pursuing this success if it hadn't been for all the shows I did around the region, and further afield, when I was starting out," stated Fender. "These venues are renowned, but they are struggling."
Since the start of 2023, over 150 of these locations have shut down – approximately one-sixth of the whole industry in the UK.
Over the past year, well-known musicians including Pulp, Coldplay, the singer Katy Perry and Sheeran have all supported the MVT in its efforts to support the industry, by including a modest fee to their ticket costs, which benefits independent venues.
Fender also participated, collecting more than £100,000 on his 2024 arena tour to help thirty-eight grassroots venues across Britain.
The money assisted locations that were facing potential shutdown due to challenges caused by water damage, fires and personal losses, as well as regulatory hurdles, court cases and neighbor objections.
Some locations received monetary aid in improving amenities and gear that directly benefitted musicians and audiences.
"The notion that funds from shows in big venues supports the smaller venues, where it kicks off for musicians like me, is just common sense," Fender has said.
The musician is among several artists to give his award funds to good deeds.
Back when they earned the trophy in the year 1996 for their record their work, frontman Cocker stated that the act would contribute their prize money to the organization War Child.
That year, rapper and singer Ms Dynamite split her award among several organizations, including the NSPCC and a charity for Sickle Cell.
"I also contributed a thousand pounds to my local community centre, to their gymnastics program, because I did gymnastics when I was younger and they required better apparatus," Ms Dynamite shared with a publication.
Previously, Ezra Collective gave their prize money to the youth organization that developed their act, as well as other grassroots music organisations.
Also winners that year the group gave their award to a charity for MS after a friend was identified with the illness.
"The victory was sufficient," stated singer Heather Small. "The money was the bonus but we could do without the extra, because we had the main prize. So our victory touched the lives of others."
In the past week, the MVT revealed it had rescued two local spots in the South East, by bringing them into local control.
One venue in that area and The Croft in the city were bought under the public acquisition scheme, which is funded by a national body and supporters who acquire "ownership units" in the venues.