The star has given the entirety of his £25,000 award cash to the Music Venues Trust, which operates to protect the United Kingdom's small music venues.
He was presented with the award on 16 October as his third album the album was declared the outstanding release of the past year.
Fender has decided to donate the funds to the Music Venues Trust, in appreciation of the crucial part local spots had in his early career.
"As an artist would not have achieved my current career if it wasn't for all the performances I performed around the area, and elsewhere, when I was starting out," stated the artist. "These venues are renowned, but they are struggling."
Since the start of 2023, more than 150 of these locations have permanently closed – roughly 16 percent of the whole industry in the UK.
In the last year, major artists such as Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its efforts to support the industry, by including a modest fee to their admission fees, which benefits independent venues.
Sam Fender also took part, generating over £100k on his 2024 arena tour to assist numerous local spots across the UK.
The donation helped venues that were facing imminent closure due to difficulties arising from water damage, fires and bereavements, as well as licensing issues, court cases and neighbor objections.
Other venues obtained financial assistance in upgrading amenities and sound and lighting systems that positively impacted performers and audiences.
"The concept that funds from performances in large arenas supports the smaller venues, where it all starts for performers like me, is just sensible," Fender has said.
He is among several artists to give his award prize money to worthy causes.
In the band won the prize in the year 1996 for their release their work, vocalist Cocker stated that the band would donate their cash to the organization War Child.
During 2002, rapper and singer she shared her bounty across multiple charities, including the children's charity and a Sickle Cell organization.
"And I donated a grand to the center, to their gymnastics class, because I practiced gymnastics when I was growing up and they lacked better apparatus," Ms Dynamite shared with a publication.
Previously, the band gave their funds to the local youth club that nurtured their group, in addition to other grassroots music organisations.
Also winners that year the group donated their award to a charity for MS after a acquaintance was found to have the illness.
"Winning was sufficient," remarked singer Small. "The prize was the extra but we didn't require the extra, because we had the cake. So our victory impacted another person's life."
Recently, the trust announced it had rescued several grassroots venues in the South East, by placing them under public stewardship.
One venue in Southampton and The Croft in the city were bought under the community ownership initiative, which is funded by the arts council and enthusiasts who purchase "stakes" in the buildings.