The star has handed over the full amount of his £25,000 award cash to the MVT, which operates to save the Britain's grassroots concert spaces.
Fender was presented with the prize on mid-October as his new release his work was chosen as the top album of the last 12 months.
Fender has opted to give the cash to the Music Venues Trust, in acknowledgment of the crucial part grassroots venues had in his early career.
"I wouldn't be doing my current career if it hadn't been for all the gigs I played around the North East, and further afield, when I was starting out," stated Sam Fender. "These spaces are iconic, but they are facing challenges."
Since the start of 2023, over 150 of these spaces have permanently closed – about 16 percent of the entire UK sector.
Recently, top acts such as the band Pulp, Coldplay, Katy Perry and Sheeran have all aided the MVT in its initiatives to keep the scene afloat, by applying a modest fee to their ticket costs, which supports independent venues.
Sam Fender also participated, collecting in excess of £100,000 on his 2024 arena tour to support 38 local spots across the UK.
The donation assisted spaces that were dealing with potential shutdown due to issues stemming from flooding, fires and personal losses, as well as licensing issues, court cases and sound issues.
Other venues received financial assistance in improving amenities and technical equipment that helped performers and fans.
"The notion that money from shows in big venues helps the independent spots, where it all starts for musicians like me, is just logical," Sam Fender has commented.
He is far from the only musician to donate his award prize money to worthy causes.
When Pulp received the award in 1996 for their release their work, lead singer the singer stated that the group would donate their winnings to the non-profit the charity.
During 2002, rapper and singer she divided her prize among several organizations, including the NSPCC and a Sickle Cell charity.
"I also contributed a thousand pounds to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was a child and they lacked better apparatus," Ms Dynamite told outlets.
Previously, they contributed their prize money to the local youth club that nurtured their act, alongside other independent music bodies.
And the 1994 recipients they donated their prize to a multiple sclerosis charity after a close contact was diagnosed the illness.
"The victory was ample," remarked vocalist Heather Small. "The money was the extra but we didn't need the cherry, because we had the honor. So our winning affected the lives of others."
In the past week, the trust revealed it had protected several grassroots venues in the South East, by transferring them to community ownership.
One venue in the city and The Croft in Bristol were purchased under the public acquisition program, which is supported by the arts council and supporters who buy "shares" in the venues.
