The artist has given the entirety of his £25k award prize money to the MVT, which functions to protect the Britain's small live music spots.
The star was awarded the award on 16 October as his latest record People Watching was named the top album of the past year.
He has decided to donate the funds to the Music Venues Trust, in appreciation of the essential function grassroots venues played in his early career.
"As an artist would not have achieved what I am doing today if it wasn't for all the shows I performed around the area, and elsewhere, when I was just getting going," remarked Fender. "These spaces are legendary, but they are in difficulty."
Beginning in 2023, at least 150 of these locations have shut down – approximately 16% of the whole industry in the UK.
Recently, major artists like Pulp, Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its efforts to help venues survive, by adding a modest fee to their ticket costs, which goes to help independent venues.
He also joined in, raising more than £100,000 on his live tour to help 38 grassroots venues across England, Scotland, and Wales.
These funds supported spaces that were dealing with imminent closure due to challenges stemming from water damage, fire incidents and family tragedies, as well as regulatory hurdles, legal disputes and neighbor objections.
Additional spaces received monetary aid in improving facilities and sound and lighting systems that helped musicians and concertgoers.
"The concept that revenue from concerts in big venues supports the independent spots, where it kicks off for performers like me, is just sensible," Fender has commented.
He is not the first artist to donate his award funds to charitable organizations.
When Pulp earned the award in the year 1996 for their record their work, frontman the singer declared that the group would donate their prize money to the charity War Child.
That year, artist the artist divided her prize between a few organizations, such as the children's charity and a Sickle Cell charity.
"I also gave a grand to the center, to their classes, because I trained in gymnastics when I was a child and they needed new equipment," Ms Dynamite told outlets.
Two years ago, Ezra Collective contributed their prize money to the local youth club that supported their group, in addition to other independent music bodies.
And 1994 winners the group gave their prize to a charity for MS after a friend was diagnosed the condition.
"Winning was sufficient," stated singer the singer. "The money was the bonus but we could do without the extra, because we had the main prize. So our winning impacted the lives of others."
Recently, the Music Venues Trust revealed it had rescued two small stages in south-east England, by bringing them into public stewardship.
The Joiners in the city and The Croft in the city were acquired under the Own Our Venues initiative, which is funded by a national body and supporters who purchase "shares" in the venues.