The star has handed over the complete sum of his £25,000 award cash to the Music Venues Trust, which operates to protect the UK's independent concert spaces.
The star was awarded the prize on mid-October as his new release People Watching was declared the top album of the past year.
He has opted to give the cash to the trust, in recognition of the crucial part local spots had in his initial steps.
"I personally would not have achieved what I am doing today if it hadn't been for all the gigs I played around the area, and further afield, when I was just getting going," said Fender. "These venues are renowned, but they are in difficulty."
Beginning in 2023, at least 150 of these spaces have ceased operations – approximately one-sixth of the total UK scene.
In the last year, major artists like the band Pulp, Coldplay, Katy Perry and Sheeran have all supported the MVT in its initiatives to keep the scene afloat, by applying a modest fee to their ticket prices, which benefits independent venues.
Fender also joined in, collecting over £100k on his 2024 arena tour to assist thirty-eight grassroots venues across the UK.
These funds supported venues that were dealing with possible closure due to difficulties caused by flooding, fire incidents and bereavements, as well as permit problems, court cases and neighbor objections.
Some locations received financial assistance in improving amenities and technical equipment that directly benefitted performers and fans.
"The concept that revenue from concerts in large arenas helps the independent spots, where it kicks off for performers like me, is just sensible," the star has said.
He is among several artists to donate his honor funds to worthy causes.
Back when the band earned the award in 1996 for their release the album, lead singer Jarvis Cocker stated that the group would give their winnings to the non-profit the charity.
That year, musician Ms Dynamite shared her award across multiple organizations, such as the children's charity and a charity for Sickle Cell.
"I also donated a grand to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was a child and they lacked better apparatus," the artist shared with a publication.
Previously, Ezra Collective gave their prize money to the community center that developed their act, in addition to other independent music bodies.
Additionally the 1994 recipients they donated their winnings to a charity for MS after a close contact was identified with the illness.
"The victory was sufficient," stated singer Small. "The money was the extra but we didn't require the bonus, because we had the honor. So our winning impacted somebody else's life."
In the past week, the Music Venues Trust announced it had rescued two local spots in that region, by transferring them to local control.
One venue in the city and the second in the city were acquired under the community ownership initiative, which is backed by a national body and supporters who purchase "ownership units" in the venues.