The star has handed over the full amount of his £25k award cash to the MVT, which operates to protect the United Kingdom's small music venues.
The star was awarded the prize on 16 October as his new release his work was chosen as the outstanding release of the previous year.
Fender has chosen to hand the money over to the MVT, in acknowledgment of the essential function grassroots venues played in his beginning days.
"I would not have achieved this success if it weren't for all the shows I played around the area, and elsewhere, when I was just getting going," said Sam Fender. "These venues are iconic, but they are in difficulty."
From early 2023 onward, at least 150 of these locations have shut down – roughly one-sixth of the total UK scene.
In the last year, top acts such as the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its attempts to keep the scene afloat, by adding a small levy to their ticket prices, which supports local stages.
Fender also participated, raising more than £100,000 on his 2024 arena tour to help numerous local spots across Britain.
The money supported locations that were facing potential shutdown due to issues arising from floods, blazes and personal losses, as well as regulatory hurdles, legal disputes and noise complaints.
Additional spaces received monetary aid in improving amenities and technical equipment that directly benefitted artists and audiences.
"The idea that funds from shows in major spaces helps the smaller venues, where it all starts for musicians like me, is just common sense," Fender has commented.
The musician is among several artists to give his award winnings to worthy causes.
In Pulp won the prize in the year 1996 for their release Different Class, lead singer Jarvis Cocker announced that the act would donate their prize money to the non-profit War Child.
During 2002, artist she shared her bounty between multiple charities, such as the NSPCC and a Sickle Cell organization.
"Additionally, I contributed a thousand pounds to Highgate Newtown, to their gymnastics program, because I did gymnastics when I was a child and they required updated gear," Ms Dynamite shared with the media.
Previously, the band gave their winnings to the local youth club that nurtured their act, as well as other independent music bodies.
And the 1994 recipients the group donated their winnings to a charity for MS after a friend was identified with the disease.
"The victory was sufficient," said vocalist the singer. "The cash was the extra but we could do without the cherry, because we had the main prize. So our victory affected somebody else's life."
Last week, the trust announced it had saved two local spots in south-east England, by transferring them to community ownership.
The Joiners in Southampton and the other in that location were purchased under the community ownership scheme, which is supported by Arts Council England and supporters who buy "shares" in the buildings.
