The artist has given the full amount of his £25k award cash to the trust for venues, which operates to save the United Kingdom's independent live music spots.
The star was awarded the prize on October 16 as his new release People Watching was declared the best record of the last 12 months.
He has decided to give the cash to the trust, in appreciation of the crucial part grassroots venues had in his initial steps.
"I personally would not have achieved this success if it wasn't for all the gigs I played around the area, and beyond, when I was starting out," remarked the artist. "These spaces are iconic, but they are facing challenges."
From early 2023 onward, more than 150 of these venues have shut down – roughly 16% of the total UK scene.
In the last year, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its attempts to keep the scene afloat, by adding a small levy to their admission fees, which benefits local stages.
He also took part, generating over £100k on his recent tour to assist numerous local spots across the UK.
The donation assisted spaces that were dealing with possible closure due to difficulties stemming from water damage, blazes and bereavements, as well as licensing issues, court cases and noise complaints.
Additional spaces received monetary aid in improving infrastructure and technical equipment that helped musicians and audiences.
"The idea that funds from performances in big venues backs the independent spots, where it kicks off for performers like me, is just logical," the star has stated.
Fender is not the first artist to donate his award prize money to worthy causes.
When the band received the trophy in the year 1996 for their record Different Class, lead singer the singer declared that the group would give their cash to the organization War Child.
In 2002, rapper and singer the artist divided her award across several charities, including the NSPCC and a Sickle Cell charity.
"I also donated a thousand pounds to the center, to their gymnastics program, because I practiced gymnastics when I was younger and they needed updated gear," Ms Dynamite explained to the media.
Previously, Ezra Collective gave their winnings to the youth organization that nurtured their band, as well as other independent music bodies.
Also the 1994 recipients M People donated their award to a multiple sclerosis charity after a close contact was found to have the condition.
"Receiving the award was sufficient," stated singer Small. "The money was the cherry on top but we could do without the cherry, because we had the main prize. So our victory touched the lives of others."
Last week, the Music Venues Trust announced it had rescued several local spots in south-east England, by bringing them into public stewardship.
The Joiners in the city and the second in Bristol were acquired under the public acquisition initiative, which is backed by Arts Council England and enthusiasts who purchase "ownership units" in the properties.
