The artist has given the complete sum of his £25,000 award winnings to the MVT, which operates to preserve the Britain's small live music spots.
He was presented with the award on 16 October as his new release People Watching was chosen as the outstanding release of the last 12 months.
He has chosen to donate the funds to the MVT, in recognition of the crucial part grassroots venues had in his early career.
"As an artist would not have achieved what I am doing today if it wasn't for all the shows I did around the North East, and beyond, when I was just getting going," remarked the artist. "These spaces are renowned, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have ceased operations – approximately 16% of the entire UK sector.
In the last year, top acts such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its efforts to help venues survive, by including a minor surcharge to their ticket prices, which supports independent venues.
Fender also joined in, collecting in excess of £100,000 on his recent tour to support 38 grassroots venues across Britain.
The donation assisted venues that were confronting possible closure due to difficulties stemming from water damage, blazes and bereavements, as well as permit problems, court cases and noise complaints.
Additional spaces were granted financial assistance in modernizing infrastructure and sound and lighting systems that directly benefitted musicians and fans.
"The concept that revenue from performances in major spaces backs the smaller venues, where it all starts for artists like me, is just logical," Fender has stated.
The musician is not the first artist to give his award funds to worthy causes.
Back when they won the award in the mid-90s for their record Different Class, vocalist the singer stated that the band would donate their winnings to the non-profit War Child.
That year, musician the artist shared her award across multiple charities, like the NSPCC and a Sickle Cell organization.
"And I contributed a thousand pounds to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was younger and they required better apparatus," the artist told the media.
In recent years, they donated their prize money to the local youth club that supported their band, alongside other local music groups.
Also 1994 winners M People contributed their prize to a charity for MS after a friend was found to have the illness.
"Receiving the award was sufficient," remarked vocalist Heather Small. "The prize was the extra but we didn't need the bonus, because we had the honor. So our winning impacted the lives of others."
In the past week, the trust shared it had saved several small stages in the South East, by placing them under local control.
One venue in that area and The Croft in that location were bought under the public acquisition initiative, which is funded by a national body and supporters who buy "ownership units" in the properties.