The star has handed over the full amount of his £25,000 honor cash to the Music Venues Trust, which operates to save the Britain's grassroots live music spots.
He was awarded the award on 16 October as his third album the album was chosen as the best record of the past year.
He has chosen to donate the funds to the trust, in appreciation of the essential function local spots had in his initial steps.
"I personally would not have achieved what I am doing today if it weren't for all the performances I performed around the North East, and elsewhere, when I was beginning," remarked Fender. "These venues are legendary, but they are facing challenges."
Beginning in 2023, at least 150 of these locations have shut down – about 16% of the total UK scene.
Over the past year, well-known musicians including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to help venues survive, by including a small levy to their ticket costs, which benefits local stages.
He also participated, collecting more than £100,000 on his live tour to support thirty-eight local spots across Britain.
These funds helped spaces that were dealing with imminent closure due to difficulties arising from flooding, blazes and bereavements, as well as regulatory hurdles, court cases and neighbor objections.
Other venues obtained financial assistance in improving infrastructure and gear that helped artists and concertgoers.
"The notion that revenue from concerts in big venues supports the local stages, where it kicks off for artists like me, is just common sense," Fender has said.
Fender is far from the only musician to donate his award prize money to good deeds.
Back when Pulp won the prize in 1996 for their release Different Class, lead singer Jarvis Cocker declared that the group would give their prize money to the non-profit the charity.
That year, rapper and singer she split her award across multiple good causes, like the NSPCC and a charity for Sickle Cell.
"Additionally, I donated a grand to the center, to their gymnastics class, because I practiced gymnastics when I was a child and they needed new equipment," she told a publication.
Previously, Ezra Collective contributed their funds to the local youth club that nurtured their act, alongside other independent music bodies.
And 1994 winners M People donated their winnings to a multiple sclerosis charity after a close contact was identified with the illness.
"Winning was sufficient," stated singer Heather Small. "The prize was the bonus but we didn't require the bonus, because we had the honor. So our winning touched somebody else's life."
Recently, the Music Venues Trust announced it had rescued two small stages in south-east England, by transferring them to community ownership.
One venue in Southampton and The Croft in Bristol were acquired under the Own Our Venues scheme, which is supported by Arts Council England and music fans who acquire "ownership units" in the buildings.