The star has donated the full amount of his £25k award winnings to the Music Venues Trust, which works to preserve the Britain's grassroots music venues.
The star was given the prize on 16 October as his latest record People Watching was chosen as the best record of the last 12 months.
The musician has opted to give the cash to the Music Venues Trust, in appreciation of the essential function small stages had in his initial steps.
"I wouldn't be doing this success if it hadn't been for all the gigs I did around the area, and beyond, when I was beginning," stated the artist. "These venues are renowned, but they are facing challenges."
Since the start of 2023, over 150 of these spaces have shut down – about one-sixth of the total UK scene.
Over the past year, major artists including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the MVT in its attempts to keep the scene afloat, by including a small levy to their ticket costs, which goes to help local stages.
He also participated, collecting over £100k on his recent tour to support 38 small stages across England, Scotland, and Wales.
The money helped venues that were facing possible closure due to challenges arising from water damage, blazes and family tragedies, as well as permit problems, court cases and neighbor objections.
Other venues obtained monetary aid in improving amenities and technical equipment that positively impacted musicians and fans.
"The notion that funds from shows in major spaces helps the independent spots, where it begins for artists like me, is just common sense," Fender has said.
He is far from the only musician to give his award winnings to good deeds.
Back when the band won the prize in the year 1996 for their record their work, vocalist the singer declared that the band would give their cash to the charity the charity.
That year, musician Ms Dynamite divided her bounty across a few good causes, including the NSPCC and a charity for Sickle Cell.
"And I contributed a £1,000 to my local community centre, to their gymnastics program, because I did gymnastics when I was growing up and they lacked updated gear," the artist told the media.
Previously, Ezra Collective contributed their winnings to the youth organization that nurtured their group, alongside other grassroots music organisations.
Additionally winners that year M People gave their prize to a MS organization after a close contact was diagnosed the illness.
"The victory was ample," said artist the singer. "The money was the extra but we didn't need the bonus, because we had the honor. So our winning affected somebody else's life."
Recently, the trust revealed it had rescued several grassroots venues in the South East, by placing them under local control.
The Joiners in the city and the other in Bristol were acquired under the Own Our Venues initiative, which is supported by Arts Council England and music fans who purchase "stakes" in the buildings.