The star has given the complete sum of his £25k award winnings to the Music Venues Trust, which functions to save the UK's small concert spaces.
He was awarded the award on mid-October as his new release his work was chosen as the outstanding release of the last 12 months.
He has chosen to donate the funds to the trust, in appreciation of the essential function small stages played in his early career.
"I wouldn't be doing what I am doing today if it hadn't been for all the performances I did around the area, and elsewhere, when I was starting out," remarked Sam Fender. "These spaces are iconic, but they are in difficulty."
Since the start of 2023, at least 150 of these venues have ceased operations – approximately 16% of the entire UK sector.
Recently, top acts such as Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its efforts to support the industry, by adding a modest fee to their ticket prices, which goes to help local stages.
He also took part, raising more than £100,000 on his 2024 arena tour to assist numerous grassroots venues across the UK.
The donation supported venues that were confronting potential shutdown due to issues arising from flooding, fires and family tragedies, as well as permit problems, conflicts and neighbor objections.
Some locations obtained financial assistance in modernizing facilities and gear that directly benefitted musicians and audiences.
"The notion that revenue from shows in big venues supports the independent spots, where it kicks off for performers like me, is just common sense," Fender has commented.
He is among several artists to donate his honor prize money to worthy causes.
Back when the band received the trophy in 1996 for their album Different Class, vocalist the singer announced that the act would give their winnings to the non-profit the charity.
In 2002, artist Ms Dynamite divided her award among multiple organizations, like the NSPCC and a charity for Sickle Cell.
"Additionally, I contributed a £1,000 to my local community centre, to their gymnastics program, because I trained in gymnastics when I was younger and they lacked better apparatus," the artist told a publication.
In recent years, they donated their funds to the youth organization that supported their act, alongside other grassroots music organisations.
Also the 1994 recipients M People contributed their winnings to a charity for MS after a acquaintance was identified with the condition.
"Winning was ample," said vocalist the singer. "The cash was the cherry on top but we didn't require the bonus, because we had the main prize. So our victory impacted the lives of others."
In the past week, the Music Venues Trust announced it had saved several grassroots venues in that region, by bringing them into local control.
One venue in that area and The Croft in Bristol were acquired under the public acquisition program, which is supported by Arts Council England and supporters who purchase "ownership units" in the properties.