The artist has given the full amount of his £25k award cash to the MVT, which functions to protect the UK's grassroots live music spots.
Fender was given the prize on 16 October as his latest record the album was named the best record of the past year.
Fender has decided to hand the money over to the Music Venues Trust, in recognition of the crucial part small stages played in his initial steps.
"As an artist would not have achieved this success if it weren't for all the performances I did around the area, and elsewhere, when I was starting out," said Fender. "These locations are iconic, but they are in difficulty."
Since the start of 2023, over 150 of these locations have permanently closed – approximately 16% of the entire UK sector.
In the last year, top acts such as the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its attempts to keep the scene afloat, by applying a modest fee to their admission fees, which supports smaller concert halls.
Sam Fender also took part, generating over £100k on his live tour to help numerous grassroots venues across England, Scotland, and Wales.
The donation assisted spaces that were dealing with imminent closure due to difficulties arising from floods, fire incidents and bereavements, as well as permit problems, conflicts and sound issues.
Additional spaces were granted monetary aid in improving infrastructure and technical equipment that helped performers and concertgoers.
"The concept that funds from concerts in major spaces supports the independent spots, where it begins for musicians like me, is just logical," the star has said.
The musician is not the first artist to give his honor winnings to charitable organizations.
Back when Pulp earned the prize in the mid-90s for their album Different Class, frontman Cocker announced that the act would donate their cash to the organization War Child.
During 2002, artist the artist split her prize between multiple charities, including the NSPCC and a Sickle Cell organization.
"And I contributed a grand to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was younger and they needed better apparatus," the artist explained to the media.
Previously, Ezra Collective gave their winnings to the local youth club that developed their group, alongside other grassroots music organisations.
And 1994 winners the group contributed their award to a MS organization after a acquaintance was identified with the disease.
"Receiving the award was ample," said artist the singer. "The prize was the bonus but we didn't require the bonus, because we had the main prize. So our winning impacted somebody else's life."
In the past week, the MVT announced it had rescued a couple of small stages in the South East, by placing them under local control.
One venue in that area and The Croft in that location were bought under the Own Our Venues scheme, which is funded by a national body and music fans who acquire "shares" in the venues.
