The star has given the full amount of his twenty-five thousand pound award cash to the Music Venues Trust, which functions to save the Britain's grassroots music venues.
He was awarded the prize on October 16 as his latest record the album was named the top album of the past year.
Fender has opted to give the cash to the trust, in recognition of the essential function small stages had in his early career.
"I personally wouldn't be doing this success if it hadn't been for all the shows I did around the region, and beyond, when I was beginning," stated Fender. "These locations are renowned, but they are in difficulty."
From early 2023 onward, more than 150 of these venues have shut down – about one-sixth of the total UK scene.
In the last year, major artists such as Pulp, Coldplay, Katy Perry and Sheeran have all supported the trust in its efforts to help venues survive, by including a minor surcharge to their ticket prices, which goes to help independent venues.
Sam Fender also participated, collecting more than £100,000 on his 2024 arena tour to help numerous small stages across England, Scotland, and Wales.
These funds assisted venues that were dealing with imminent closure due to issues stemming from flooding, fires and personal losses, as well as licensing issues, court cases and noise complaints.
Some locations received funding support in improving infrastructure and technical equipment that helped artists and fans.
"The idea that revenue from performances in major spaces helps the smaller venues, where it begins for artists like me, is just common sense," Fender has commented.
Fender is not the first artist to contribute his honor winnings to good deeds.
When Pulp received the prize in the year 1996 for their record their work, frontman Jarvis Cocker declared that the band would give their cash to the non-profit the charity.
During 2002, musician she shared her prize across multiple good causes, such as the children's charity and a charity for Sickle Cell.
"Additionally, I donated a £1,000 to the center, to their gymnastics class, because I practiced gymnastics when I was growing up and they required new equipment," she shared with the media.
Previously, Ezra Collective contributed their winnings to the local youth club that nurtured their act, alongside other grassroots music organisations.
And 1994 winners the group contributed their winnings to a multiple sclerosis charity after a close contact was diagnosed the condition.
"Receiving the award was sufficient," said vocalist the singer. "The cash was the bonus but we didn't need the bonus, because we had the cake. So our winning affected somebody else's life."
Recently, the MVT announced it had saved a couple of small stages in that region, by placing them under community ownership.
One venue in Southampton and the second in that location were purchased under the community ownership initiative, which is funded by a national body and supporters who purchase "shares" in the buildings.