The artist has handed over the full amount of his twenty-five thousand pound honor cash to the MVT, which functions to protect the United Kingdom's small live music spots.
Fender was presented with the prize on 16 October as his third album People Watching was declared the outstanding release of the last 12 months.
The musician has chosen to donate the funds to the Music Venues Trust, in recognition of the crucial part local spots fulfilled in his early career.
"I personally wouldn't be doing what I am doing today if it wasn't for all the performances I did around the North East, and beyond, when I was starting out," remarked the artist. "These spaces are renowned, but they are struggling."
From early 2023 onward, over 150 of these venues have ceased operations – roughly one-sixth of the whole industry in the UK.
Recently, top acts including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to support the industry, by adding a modest fee to their ticket costs, which supports local stages.
Sam Fender also took part, generating over £100k on his recent tour to assist numerous grassroots venues across England, Scotland, and Wales.
These funds assisted locations that were facing potential shutdown due to challenges arising from water damage, fire incidents and personal losses, as well as licensing issues, conflicts and noise complaints.
Some locations obtained monetary aid in upgrading amenities and technical equipment that directly benefitted performers and concertgoers.
"The concept that funds from performances in large arenas supports the local stages, where it all starts for performers like me, is just sensible," the star has said.
The musician is among several artists to contribute his award funds to charitable organizations.
In the band won the trophy in the mid-90s for their record the album, lead singer Jarvis Cocker announced that the band would contribute their winnings to the charity War Child.
That year, rapper and singer Ms Dynamite split her award across multiple organizations, including the children's charity and a Sickle Cell charity.
"I also contributed a thousand pounds to my local community centre, to their classes, because I trained in gymnastics when I was growing up and they required better apparatus," the artist shared with outlets.
In recent years, the band donated their funds to the community center that nurtured their band, in addition to other independent music bodies.
Also winners that year M People donated their winnings to a charity for MS after a acquaintance was identified with the illness.
"Receiving the award was ample," said vocalist the singer. "The money was the bonus but we didn't require the extra, because we had the cake. So our victory touched somebody else's life."
Recently, the MVT announced it had saved several grassroots venues in the South East, by transferring them to public stewardship.
The first in that area and the other in the city were purchased under the Own Our Venues program, which is supported by Arts Council England and enthusiasts who purchase "shares" in the buildings.