The star has donated the entirety of his £25k honor cash to the Music Venues Trust, which works to save the Britain's grassroots music venues.
The star was awarded the prize on October 16 as his new release the album was chosen as the outstanding release of the past year.
He has chosen to hand the money over to the Music Venues Trust, in recognition of the essential function grassroots venues played in his beginning days.
"I wouldn't be doing what I am doing today if it wasn't for all the gigs I played around the region, and further afield, when I was beginning," stated the artist. "These venues are renowned, but they are facing challenges."
Since the start of 2023, at least 150 of these venues have shut down – about 16 percent of the whole industry in the UK.
Over the past year, well-known musicians including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its initiatives to keep the scene afloat, by applying a small levy to their ticket prices, which goes to help local stages.
Fender also took part, collecting over £100k on his recent tour to assist 38 grassroots venues across Britain.
The donation assisted locations that were facing possible closure due to difficulties stemming from water damage, fires and family tragedies, as well as licensing issues, court cases and sound issues.
Other venues were granted financial assistance in upgrading amenities and technical equipment that helped performers and concertgoers.
"The concept that money from concerts in big venues helps the local stages, where it all starts for artists like me, is just sensible," Fender has stated.
Fender is not the first artist to donate his honor funds to charitable organizations.
When the band earned the award in the year 1996 for their album Different Class, vocalist Cocker declared that the act would donate their prize money to the organization War Child.
During 2002, rapper and singer Ms Dynamite divided her bounty across several charities, including the NSPCC and a Sickle Cell organization.
"Additionally, I gave a £1,000 to the center, to their gymnastics class, because I practiced gymnastics when I was a child and they required updated gear," she told a publication.
Previously, Ezra Collective gave their prize money to the community center that nurtured their group, alongside other local music groups.
Also 1994 winners the group gave their award to a charity for MS after a close contact was diagnosed the condition.
"Receiving the award was sufficient," said artist Heather Small. "The cash was the bonus but we could do without the extra, because we had the main prize. So our winning impacted somebody else's life."
Recently, the Music Venues Trust revealed it had protected several grassroots venues in the South East, by bringing them into local control.
One venue in Southampton and The Croft in the city were purchased under the Own Our Venues scheme, which is backed by the arts council and supporters who acquire "stakes" in the buildings.
