The star has given the entirety of his £25,000 award cash to the trust for venues, which operates to preserve the UK's grassroots live music spots.
The star was awarded the prize on October 16 as his latest record People Watching was chosen as the outstanding release of the last 12 months.
He has opted to donate the funds to the MVT, in recognition of the essential function grassroots venues had in his initial steps.
"As an artist wouldn't be doing my current career if it wasn't for all the performances I performed around the area, and elsewhere, when I was just getting going," said the artist. "These spaces are renowned, but they are facing challenges."
From early 2023 onward, more than 150 of these spaces have permanently closed – approximately 16 percent of the entire UK sector.
In the last year, major artists like Pulp, Coldplay, the singer Katy Perry and Sheeran have all supported the MVT in its efforts to keep the scene afloat, by applying a small levy to their admission fees, which supports smaller concert halls.
Fender also participated, generating more than £100,000 on his 2024 arena tour to assist numerous local spots across England, Scotland, and Wales.
The money supported spaces that were facing possible closure due to difficulties caused by water damage, fires and personal losses, as well as permit problems, legal disputes and noise complaints.
Additional spaces received financial assistance in modernizing facilities and gear that positively impacted artists and concertgoers.
"The notion that money from shows in large arenas supports the smaller venues, where it kicks off for performers like me, is just logical," the star has stated.
The musician is far from the only musician to donate his award prize money to worthy causes.
Back when they received the prize in the year 1996 for their album Different Class, vocalist Jarvis Cocker declared that the group would give their prize money to the charity War Child.
In 2002, rapper and singer the artist divided her award among several organizations, like the NSPCC and a charity for Sickle Cell.
"And I gave a grand to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was younger and they lacked better apparatus," she told a publication.
Previously, they gave their winnings to the youth organization that developed their group, as well as other grassroots music organisations.
Also winners that year the group donated their winnings to a MS organization after a friend was found to have the illness.
"Winning was sufficient," remarked artist Heather Small. "The prize was the cherry on top but we didn't require the cherry, because we had the main prize. So our winning affected somebody else's life."
Last week, the MVT revealed it had rescued two small stages in the South East, by transferring them to public stewardship.
One venue in the city and the other in Bristol were purchased under the community ownership initiative, which is backed by the arts council and music fans who buy "stakes" in the buildings.
