The artist has given the full amount of his £25,000 honor cash to the Music Venues Trust, which works to protect the UK's independent music venues.
The star was given the award on 16 October as his third album his work was declared the top album of the past year.
He has opted to hand the money over to the trust, in appreciation of the vital role local spots had in his initial steps.
"I would not have achieved this success if it weren't for all the gigs I performed around the region, and beyond, when I was just getting going," said Sam Fender. "These venues are renowned, but they are struggling."
Since the start of 2023, more than 150 of these venues have permanently closed – roughly one-sixth of the whole industry in the UK.
Over the past year, major artists including Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all aided the MVT in its initiatives to support the industry, by applying a small levy to their admission fees, which goes to help local stages.
Fender also took part, raising more than £100,000 on his 2024 arena tour to assist 38 local spots across the UK.
The donation assisted venues that were dealing with potential shutdown due to issues stemming from water damage, fires and bereavements, as well as licensing issues, court cases and neighbor objections.
Additional spaces were granted financial assistance in upgrading amenities and technical equipment that directly benefitted musicians and fans.
"The idea that revenue from performances in major spaces supports the smaller venues, where it kicks off for performers like me, is just sensible," the star has said.
The musician is among several artists to donate his award funds to good deeds.
Back when Pulp won the award in the mid-90s for their record the album, frontman Jarvis Cocker declared that the act would donate their prize money to the charity War Child.
In 2002, artist the artist shared her award among multiple good causes, like the NSPCC and a Sickle Cell organization.
"And I gave a grand to my local community centre, to their gymnastics program, because I did gymnastics when I was a child and they lacked updated gear," Ms Dynamite told the media.
In recent years, Ezra Collective gave their prize money to the youth organization that supported their group, as well as other local music groups.
Also winners that year M People gave their award to a charity for MS after a acquaintance was found to have the disease.
"The victory was sufficient," remarked vocalist Heather Small. "The cash was the cherry on top but we could do without the bonus, because we had the honor. So our success affected the lives of others."
Recently, the trust announced it had saved several grassroots venues in that region, by placing them under public stewardship.
The Joiners in that area and The Croft in the city were bought under the community ownership program, which is backed by Arts Council England and supporters who purchase "shares" in the buildings.
