The star has handed over the entirety of his twenty-five thousand pound award cash to the Music Venues Trust, which operates to protect the Britain's independent live music spots.
Fender was awarded the prize on mid-October as his third album People Watching was named the top album of the previous year.
Fender has decided to donate the funds to the Music Venues Trust, in acknowledgment of the vital role local spots had in his initial steps.
"I personally couldn't be pursuing my current career if it weren't for all the gigs I did around the area, and further afield, when I was beginning," remarked Fender. "These spaces are iconic, but they are facing challenges."
Beginning in 2023, over 150 of these venues have ceased operations – about 16% of the whole industry in the UK.
In the last year, major artists 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 ticket costs, which supports local stages.
Fender also took part, raising over £100k on his 2024 arena tour to assist thirty-eight local spots across the UK.
The money assisted spaces that were confronting potential shutdown due to difficulties caused by floods, fire incidents and bereavements, as well as permit problems, legal disputes and noise complaints.
Other venues were granted financial assistance in upgrading facilities and sound and lighting systems that helped artists and fans.
"The concept that revenue from shows in big venues backs the local stages, where it kicks off for musicians like me, is just logical," Sam Fender has said.
He is far from the only musician to give his honor prize money to charitable organizations.
Back when Pulp earned the award in 1996 for their release Different Class, frontman Cocker stated that the band would donate their cash to the organization War Child.
During 2002, musician the artist split her award across multiple organizations, such as the NSPCC and a Sickle Cell charity.
"Additionally, I donated a £1,000 to my local community centre, to their classes, because I trained in gymnastics when I was younger and they required better apparatus," she explained to the media.
Two years ago, they gave their winnings to the youth organization that nurtured their act, in addition to other grassroots music organisations.
Also winners that year the group gave their award to a multiple sclerosis charity after a friend was found to have the condition.
"Receiving the award was ample," said singer Heather Small. "The cash was the extra but we didn't need the extra, because we had the main prize. So our victory affected another person's life."
Recently, the Music Venues Trust revealed it had saved a couple of small stages in south-east England, by placing them under public stewardship.
The first in the city and the second in the city were purchased under the Own Our Venues initiative, which is funded by the arts council and enthusiasts who acquire "ownership units" in the venues.