The artist has handed over the complete sum of his £25,000 award cash to the MVT, which operates to preserve the Britain's small live music spots.
The star was given the cheque on mid-October as his new release People Watching was named the top album of the previous year.
The musician has decided to give the cash to the trust, in acknowledgment of the vital role grassroots venues fulfilled in his beginning days.
"I personally couldn't be pursuing my current career if it wasn't for all the performances I did around the North East, and further afield, when I was beginning," remarked Fender. "These venues are iconic, but they are facing challenges."
Since the start of 2023, more than 150 of these locations have permanently closed – about 16 percent of the whole industry in the UK.
In the last year, well-known musicians such as Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the MVT in its initiatives to help venues survive, by adding a modest fee to their ticket prices, which benefits independent venues.
He also took part, raising more than £100,000 on his live tour to assist thirty-eight small stages across England, Scotland, and Wales.
These funds assisted spaces that were dealing with imminent closure due to issues caused by floods, fire incidents and personal losses, as well as licensing issues, legal disputes and sound issues.
Some locations obtained financial assistance in improving infrastructure and sound and lighting systems that positively impacted artists and audiences.
"The notion that funds from shows in large arenas backs the local stages, where it begins for performers like me, is just logical," Fender has commented.
The musician is far from the only musician to contribute his award winnings to worthy causes.
When the band earned the award in 1996 for their record their work, frontman the singer stated that the act would contribute their prize money to the organization the charity.
In 2002, rapper and singer she shared her bounty among several charities, like the NSPCC and a Sickle Cell charity.
"Additionally, I gave a grand to my local community centre, to their gymnastics class, because I did gymnastics when I was a child and they lacked better apparatus," the artist shared with the media.
In recent years, they donated their winnings to the local youth club that developed their act, alongside other independent music bodies.
And 1994 winners the group donated their prize to a multiple sclerosis charity after a friend was found to have the illness.
"The victory was quite enough," stated artist the singer. "The cash was the extra but we didn't need the cherry, because we had the honor. So our victory touched the lives of others."
In the past week, the trust revealed it had rescued a couple of grassroots venues in the South East, by placing them under community ownership.
The Joiners in Southampton and the other in Bristol were acquired under the community ownership initiative, which is supported by the arts council and music fans who acquire "stakes" in the venues.