The star has handed over the full amount of his £25,000 Mercury Prize cash to the MVT, which functions to protect the UK's independent concert spaces.
He was given the cheque on mid-October as his new release People Watching was named the top album of the past year.
The musician has decided to give the cash to the MVT, in recognition of the vital role local spots had in his beginning days.
"As an artist would not have achieved what I am doing today if it weren't for all the shows I played around the region, and further afield, when I was starting out," stated Fender. "These locations are legendary, but they are facing challenges."
Since the start of 2023, over 150 of these venues have shut down – about 16% of the whole industry in the UK.
In the last year, top acts including Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the MVT in its initiatives to support the industry, by adding a small levy to their ticket costs, which supports independent venues.
He also joined in, raising in excess of £100,000 on his 2024 arena tour to help 38 small stages across Britain.
The money assisted venues that were confronting possible closure due to issues caused by flooding, fire incidents and bereavements, as well as licensing issues, legal disputes and noise complaints.
Additional spaces were granted monetary aid in upgrading infrastructure and technical equipment that positively impacted performers and concertgoers.
"The idea that revenue from performances in big venues backs the independent spots, where it all starts for musicians like me, is just sensible," Fender has stated.
He is among several artists to donate his Mercury Prize prize money to worthy causes.
In they won the prize in 1996 for their album Different Class, vocalist Cocker declared that the act would contribute their prize money to the non-profit War Child.
In 2002, musician Ms Dynamite divided her award between multiple charities, like the NSPCC and a Sickle Cell charity.
"Additionally, I contributed a £1,000 to my local community centre, to their gymnastics class, because I practiced gymnastics when I was younger and they needed new equipment," she shared with outlets.
Two years ago, the band contributed their funds to the youth organization that supported their act, in addition to other local music groups.
Additionally winners that year M People gave their award to a MS organization after a close contact was identified with the disease.
"Winning was quite enough," said vocalist Small. "The prize was the cherry on top but we didn't need the extra, because we had the honor. So our success impacted the lives of others."
In the past week, the MVT shared it had protected several local spots in south-east England, by placing them under community ownership.
The first in Southampton and The Croft in that location were acquired under the community ownership initiative, which is supported by Arts Council England and enthusiasts who purchase "shares" in the venues.
