The star has handed over the full amount of his twenty-five thousand pound award cash to the Music Venues Trust, which functions to preserve the UK's grassroots live music spots.
He was presented with the cheque on mid-October as his new release People Watching was declared the best record of the previous year.
The musician has opted to donate the funds to the Music Venues Trust, in appreciation of the vital role grassroots venues played in his beginning days.
"I personally wouldn't be doing my current career if it wasn't for all the shows I did around the area, and beyond, when I was just getting going," remarked Fender. "These locations are legendary, but they are facing challenges."
From early 2023 onward, more than 150 of these locations have permanently closed – roughly 16 percent of the total UK scene.
In the last year, well-known musicians like the band Pulp, Coldplay, Katy Perry and Sheeran have all backed the trust in its attempts to support the industry, by applying a minor surcharge to their ticket prices, which supports smaller concert halls.
Fender also joined in, collecting in excess of £100,000 on his live tour to assist thirty-eight small stages across England, Scotland, and Wales.
The money helped venues that were confronting potential shutdown due to issues caused by water damage, fire incidents and personal losses, as well as regulatory hurdles, court cases and neighbor objections.
Other venues obtained financial assistance in upgrading facilities and sound and lighting systems that positively impacted performers and audiences.
"The concept that revenue from performances in major spaces backs the smaller venues, where it all starts for artists like me, is just sensible," Sam Fender has commented.
Fender is among several artists to give his honor prize money to charitable organizations.
Back when Pulp received the award in 1996 for their release their work, lead singer Cocker declared that the band would donate their cash to the organization War Child.
During 2002, musician the artist divided her award across a few charities, including the NSPCC and a Sickle Cell charity.
"I also donated a £1,000 to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was younger and they lacked better apparatus," Ms Dynamite shared with outlets.
In recent years, the band contributed their funds to the local youth club that supported their act, as well as other local music groups.
Also winners that year they contributed their award to a charity for MS after a friend was diagnosed the illness.
"The victory was ample," remarked artist Small. "The prize was the bonus but we didn't require the extra, because we had the cake. So our success touched somebody else's life."
Recently, the Music Venues Trust announced it had protected two small stages in that region, by transferring them to local control.
The first in Southampton and The Croft in Bristol were acquired under the community ownership initiative, which is supported by Arts Council England and supporters who purchase "stakes" in the venues.