The star has handed over the entirety of his £25k honor cash to the Music Venues Trust, which functions to preserve the Britain's small music venues.
The star was presented with the prize on 16 October as his third album People Watching was named the best record of the previous year.
He has opted to hand the money over to the trust, in recognition of the crucial part local spots played in his early career.
"As an artist couldn't be pursuing my current career if it hadn't been for all the shows I performed around the area, and elsewhere, when I was starting out," remarked the artist. "These venues are iconic, but they are facing challenges."
Beginning in 2023, more than 150 of these locations have ceased operations – approximately 16 percent of the whole industry in the UK.
Over the past year, well-known musicians like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its attempts to help venues survive, by including a minor surcharge to their ticket costs, which benefits local stages.
He also participated, generating over £100k on his recent tour to support numerous grassroots venues across Britain.
The donation assisted venues that were confronting potential shutdown due to issues stemming from flooding, fires and bereavements, as well as licensing issues, conflicts and noise complaints.
Some locations were granted funding support in modernizing facilities and technical equipment that helped musicians and fans.
"The notion that money from shows in large arenas supports the local stages, where it begins for artists like me, is just sensible," Fender has said.
The musician is not the first artist to donate his honor prize money to good deeds.
When the band earned the award in the mid-90s for their album the album, lead singer Cocker stated that the group would give their winnings to the charity War Child.
During 2002, rapper and singer the artist split her award between a few good causes, such as the children's charity and a charity for Sickle Cell.
"I also donated a thousand pounds to the center, to their gymnastics class, because I did gymnastics when I was growing up and they required updated gear," Ms Dynamite explained to a publication.
Previously, the band gave their winnings to the local youth club that nurtured their act, alongside other independent music bodies.
Additionally the 1994 recipients they contributed their award to a charity for MS after a acquaintance was found to have the disease.
"Receiving the award was quite enough," said singer Small. "The cash was the extra but we didn't need the bonus, because we had the honor. So our success impacted another person's life."
In the past week, the Music Venues Trust announced it had protected a couple of small stages in south-east England, by bringing them into local control.
The first in that area and The Croft in that location were acquired under the Own Our Venues initiative, which is funded by the arts council and music fans who acquire "shares" in the venues.
