The artist has handed over the full amount of his £25,000 honor cash to the Music Venues Trust, which works to save the UK's grassroots music venues.
Fender was presented with the award on October 16 as his latest record his work was chosen as the outstanding release of the past year.
The musician has chosen to hand the money over to the trust, in recognition of the vital role grassroots venues had in his beginning days.
"I personally couldn't be pursuing what I am doing today if it hadn't been for all the performances I played around the region, and further afield, when I was just getting going," said the artist. "These locations are renowned, but they are facing challenges."
Since the start of 2023, more than 150 of these venues have permanently closed – approximately 16 percent of the total UK scene.
In the last year, top acts like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its attempts to keep the scene afloat, by adding a small levy to their admission fees, which benefits smaller concert halls.
He also joined in, generating over £100k on his recent tour to support 38 grassroots venues across the UK.
The money assisted spaces that were dealing with imminent closure due to challenges caused by floods, fires and personal losses, as well as permit problems, legal disputes and noise complaints.
Additional spaces received monetary aid in upgrading infrastructure and gear that helped performers and fans.
"The notion that revenue from shows in major spaces supports the local stages, where it kicks off for performers like me, is just logical," Fender has commented.
The musician is not the first artist to donate his award prize money to good deeds.
When the band earned the award in the year 1996 for their release Different Class, frontman the singer stated that the act would contribute their prize money to the organization the charity.
In 2002, rapper and singer the artist shared her prize between multiple good causes, like the children's charity and a charity for Sickle Cell.
"Additionally, I contributed a thousand pounds to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was growing up and they needed better apparatus," she explained to a publication.
In recent years, the band gave their funds to the youth organization that developed their band, in addition to other local music groups.
And the 1994 recipients they gave their prize to a multiple sclerosis charity after a close contact was diagnosed the condition.
"Receiving the award was quite enough," stated artist Heather Small. "The cash was the bonus but we could do without the extra, because we had the honor. So our success impacted the lives of others."
In the past week, the trust announced it had protected several local spots in the South East, by transferring them to public stewardship.
One venue in Southampton and the other in that location were purchased under the Own Our Venues initiative, which is supported by the arts council and supporters who purchase "stakes" in the properties.