The star has donated the entirety of his £25,000 honor cash to the MVT, which functions to protect the UK's small live music spots.
He was presented with the award on mid-October as his latest record the album was named the best record of the previous year.
He has decided to donate the funds to the trust, in acknowledgment of the vital role small stages played in his early career.
"As an artist couldn't be pursuing what I am doing today if it weren't for all the performances I played around the North East, and elsewhere, when I was starting out," stated the artist. "These spaces are renowned, but they are facing challenges."
Beginning in 2023, more than 150 of these spaces have permanently closed – approximately 16 percent of the total UK scene.
Recently, top acts such as Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the MVT in its attempts to keep the scene afloat, by adding a minor surcharge to their admission fees, which benefits local stages.
He also participated, raising more than £100,000 on his recent tour to help thirty-eight small stages across the UK.
The donation supported spaces that were facing potential shutdown due to difficulties arising from floods, fire incidents and bereavements, as well as permit problems, legal disputes and sound issues.
Additional spaces obtained financial assistance in improving amenities and gear that directly benefitted performers and fans.
"The concept that funds from concerts in major spaces helps the independent spots, where it all starts for musicians like me, is just logical," Fender has said.
The musician is among several artists to give his honor prize money to charitable organizations.
Back when the band received the trophy in the mid-90s for their release their work, vocalist Cocker stated that the group would give their prize money to the organization War Child.
That year, rapper and singer Ms Dynamite divided her award among several charities, such as the children's charity and a Sickle Cell organization.
"And I donated a thousand pounds to Highgate Newtown, to their classes, because I did gymnastics when I was younger and they needed new equipment," Ms Dynamite shared with the media.
In recent years, Ezra Collective donated their funds to the local youth club that nurtured their group, in addition to other grassroots music organisations.
Also 1994 winners they contributed their winnings to a MS organization after a friend was diagnosed the illness.
"Receiving the award was ample," said vocalist the singer. "The prize was the extra but we could do without the extra, because we had the main prize. So our victory affected somebody else's life."
In the past week, the Music Venues Trust announced it had rescued several local spots in south-east England, by bringing them into public stewardship.
One venue in Southampton and The Croft in Bristol were purchased under the public acquisition scheme, which is supported by the arts council and supporters who buy "stakes" in the buildings.
