The artist has given the entirety of his £25,000 award cash to the MVT, which works to preserve the UK's independent music venues.
Fender was awarded the cheque on October 16 as his latest record his work was declared the best record of the previous year.
The musician has chosen to give the cash to the Music Venues Trust, in recognition of the vital role grassroots venues had in his beginning days.
"I personally wouldn't be doing my current career if it hadn't been for all the performances I played around the North East, and further afield, when I was just getting going," remarked Fender. "These spaces are legendary, but they are struggling."
Since the start of 2023, at least 150 of these venues have ceased operations – about 16 percent of the whole industry in the UK.
In the last year, major artists such as the band Pulp, Coldplay, Katy Perry and Sheeran have all aided the MVT in its attempts to help venues survive, by including a modest fee to their ticket prices, which goes to help independent venues.
Sam Fender also took part, collecting in excess of £100,000 on his recent tour to support 38 grassroots venues across the UK.
The donation assisted locations that were facing possible closure due to difficulties arising from water damage, fire incidents and bereavements, as well as regulatory hurdles, court cases and neighbor objections.
Some locations were granted monetary aid in modernizing amenities and sound and lighting systems that directly benefitted musicians and concertgoers.
"The idea that revenue from performances in big venues supports the smaller venues, where it all starts for performers like me, is just logical," Sam Fender has commented.
Fender is far from the only musician to contribute his honor prize money to charitable organizations.
Back when Pulp earned the award in 1996 for their album Different Class, vocalist Cocker stated that the act would donate their winnings to the non-profit War Child.
During 2002, rapper and singer she split her award among a few organizations, such as the NSPCC and a charity for Sickle Cell.
"I also donated a thousand pounds to the center, to their gymnastics program, because I did gymnastics when I was a child and they lacked new equipment," she shared with a publication.
In recent years, they contributed their funds to the youth organization that developed their group, alongside other independent music bodies.
Additionally the 1994 recipients the group donated their prize to a charity for MS after a close contact was identified with the illness.
"The victory was ample," stated vocalist Heather Small. "The cash was the extra but we could do without the bonus, because we had the cake. So our success affected the lives of others."
In the past week, the MVT announced it had protected a couple of local spots in that region, by placing them under community ownership.
One venue in Southampton and the second in Bristol were acquired under the public acquisition scheme, which is funded by the arts council and music fans who buy "stakes" in the buildings.