The star has handed over the entirety of his £25k award cash to the Music Venues Trust, which works to protect the Britain's small live music spots.
The star was presented with the prize on October 16 as his third album his work was chosen as the outstanding release of the last 12 months.
The musician has chosen to give the cash to the Music Venues Trust, in appreciation of the essential function small stages played in his initial steps.
"I personally would not have achieved what I am doing today if it weren't for all the performances I performed around the North East, and further afield, when I was beginning," said Fender. "These spaces are iconic, but they are facing challenges."
From early 2023 onward, at least 150 of these spaces have shut down – roughly 16% of the whole industry in the UK.
In the last year, well-known musicians like Pulp, Coldplay, the singer Katy Perry and Sheeran have all aided the trust in its attempts to help venues survive, by adding a small levy to their ticket prices, which supports local stages.
Sam Fender also took part, raising in excess of £100,000 on his 2024 arena tour to assist 38 small stages across Britain.
The money assisted venues that were dealing with imminent closure due to difficulties caused by water damage, fire incidents and personal losses, as well as regulatory hurdles, conflicts and sound issues.
Some locations were granted funding support in modernizing facilities and technical equipment that positively impacted performers and audiences.
"The concept that money from concerts in large arenas supports the smaller venues, where it begins for musicians like me, is just logical," Sam Fender has said.
The musician is far from the only musician to give his honor winnings to worthy causes.
Back when they won the trophy in 1996 for their record Different Class, vocalist the singer declared that the group would give their cash to the non-profit War Child.
In 2002, musician she shared her bounty among several good causes, such as the NSPCC and a Sickle Cell charity.
"Additionally, I contributed a thousand pounds to my local community centre, to their classes, because I trained in gymnastics when I was a child and they required better apparatus," she explained to outlets.
In recent years, the band donated their prize money to the youth organization that developed their act, in addition to other grassroots music organisations.
And the 1994 recipients they gave their award to a MS organization after a close contact was found to have the disease.
"Winning was ample," remarked vocalist Heather Small. "The prize was the extra but we could do without the bonus, because we had the cake. So our success touched somebody else's life."
Last week, the Music Venues Trust announced it had protected several small stages in that region, by placing them under community ownership.
The first in that area and The Croft in that location were acquired under the Own Our Venues program, which is supported by a national body and supporters who buy "shares" in the venues.