The star has given the complete sum of his £25k honor winnings to the Music Venues Trust, which operates to preserve the Britain's small concert spaces.
The star was awarded the prize on October 16 as his latest record People Watching was named the top album of the past year.
He has decided to donate the funds to the trust, in appreciation of the crucial part grassroots venues had in his early career.
"I personally couldn't be pursuing what I am doing today if it weren't for all the shows I played around the area, and further afield, when I was starting out," remarked the artist. "These locations are renowned, but they are in difficulty."
Beginning in 2023, more than 150 of these locations have ceased operations – about one-sixth of the whole industry in the UK.
In the last year, well-known musicians like the band Pulp, Coldplay, Katy Perry and Sheeran have all supported the trust in its attempts to help venues survive, by adding a modest fee to their ticket prices, which benefits local stages.
Fender also joined in, generating in excess of £100,000 on his 2024 arena tour to assist 38 small stages across England, Scotland, and Wales.
The donation assisted venues that were dealing with potential shutdown due to issues stemming from flooding, blazes and personal losses, as well as licensing issues, legal disputes and neighbor objections.
Some locations were granted funding support in improving infrastructure and technical equipment that directly benefitted performers and audiences.
"The concept that funds from performances in big venues supports the independent spots, where it begins for performers like me, is just common sense," the star has said.
He is far from the only musician to donate his honor prize money to charitable organizations.
When Pulp received the award in 1996 for their record the album, vocalist Cocker stated that the act would donate their winnings to the non-profit War Child.
In 2002, musician Ms Dynamite shared her award across several good causes, including the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a grand to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was younger and they needed better apparatus," she explained to outlets.
Two years ago, they contributed their funds to the local youth club that developed their act, as well as other independent music bodies.
Additionally winners that year they gave their prize to a multiple sclerosis charity after a friend was identified with the illness.
"Winning was ample," stated singer Small. "The money was the extra but we didn't require the cherry, because we had the cake. So our success touched another person's life."
In the past week, the trust revealed it had saved two local spots in south-east England, by transferring them to community ownership.
The Joiners in Southampton and the second in Bristol were acquired under the public acquisition scheme, which is supported by the arts council and music fans who buy "ownership units" in the properties.
