The star has handed over the entirety of his £25k award cash to the Music Venues Trust, which functions to protect the UK's grassroots live music spots.
The star was given the cheque on 16 October as his new release People Watching was chosen as the top album of the previous year.
He has decided to hand the money over to the trust, in appreciation of the crucial part small stages fulfilled in his initial steps.
"I couldn't be pursuing this success if it hadn't been for all the performances I played around the area, and further afield, when I was beginning," stated the artist. "These locations are legendary, but they are in difficulty."
Beginning in 2023, at least 150 of these locations have ceased operations – about 16% of the entire UK sector.
Over the past year, major artists like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its efforts to support the industry, by applying a small levy to their ticket prices, which goes to help smaller concert halls.
Fender also joined in, collecting over £100k on his live tour to support numerous small stages across England, Scotland, and Wales.
These funds assisted venues that were confronting imminent closure due to challenges caused by floods, fires and bereavements, as well as regulatory hurdles, conflicts and neighbor objections.
Other venues received monetary aid in upgrading infrastructure and sound and lighting systems that directly benefitted musicians and audiences.
"The idea that revenue from shows in large arenas helps the local stages, where it all starts for musicians like me, is just sensible," Fender has stated.
The musician is far from the only musician to contribute his award prize money to charitable organizations.
Back when they won the trophy in 1996 for their release Different Class, lead singer Cocker declared that the group would donate their prize money to the charity War Child.
During 2002, rapper and singer she split her award across several organizations, including the children's charity and a Sickle Cell organization.
"Additionally, I gave a thousand pounds to my local community centre, to their classes, because I trained in gymnastics when I was growing up and they lacked better apparatus," the artist shared with a publication.
Two years ago, the band contributed their prize money to the community center that nurtured their act, alongside other local music groups.
Also winners that year M People contributed their winnings to a multiple sclerosis charity after a friend was identified with the disease.
"Winning was ample," stated artist Small. "The cash was the cherry on top but we could do without the bonus, because we had the honor. So our winning affected another person's life."
In the past week, the MVT announced it had rescued two small stages in the South East, by transferring them to public stewardship.
The Joiners in the city and the second in Bristol were bought under the Own Our Venues initiative, which is funded by a national body and enthusiasts who acquire "shares" in the buildings.