The star has given the full amount of his £25,000 award cash to the trust for venues, which works to protect the UK's independent concert spaces.
He was given the cheque on 16 October as his new release his work was named the best record of the previous year.
Fender has decided to hand the money over to the trust, in recognition of the vital role small stages fulfilled in his beginning days.
"I would not have achieved 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 beginning," said Fender. "These locations are renowned, but they are struggling."
Since the start of 2023, at least 150 of these venues have permanently closed – roughly 16% of the whole industry in the UK.
Recently, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its initiatives to keep the scene afloat, by adding a small levy to their ticket prices, which benefits local stages.
Fender also joined in, raising over £100k on his 2024 arena tour to help 38 local spots across England, Scotland, and Wales.
These funds assisted spaces that were confronting possible closure due to issues stemming from flooding, fires and family tragedies, as well as regulatory hurdles, legal disputes and noise complaints.
Other venues received funding support in modernizing amenities and technical equipment that positively impacted performers and audiences.
"The concept that revenue from concerts in major spaces helps the smaller venues, where it kicks off for musicians like me, is just logical," Fender has stated.
The musician is among several artists to donate his honor prize money to charitable organizations.
Back when the band earned the award in the year 1996 for their record the album, frontman Cocker stated that the band would give their cash to the organization the charity.
In 2002, artist Ms Dynamite divided her prize across several charities, like the children's charity and a charity for Sickle Cell.
"I also donated a £1,000 to Highgate Newtown, to their classes, because I trained in gymnastics when I was a child and they needed updated gear," the artist explained to the media.
Two years ago, they donated their prize money to the local youth club that supported their act, alongside other independent music bodies.
And the 1994 recipients M People donated their award to a MS organization after a friend was found to have the disease.
"Receiving the award was quite enough," stated vocalist Heather Small. "The prize was the bonus but we didn't need the extra, because we had the honor. So our winning touched the lives of others."
Recently, the trust shared it had rescued several small stages in south-east England, by transferring them to local control.
The first in that area and the other in the city were bought under the Own Our Venues program, which is backed by a national body and music fans who acquire "ownership units" in the properties.
