The star has given the entirety of his twenty-five thousand pound honor winnings to the MVT, which works to protect the UK's independent live music spots.
The star was presented with the award on mid-October as his new release People Watching was declared the best record of the last 12 months.
The musician has decided to donate the funds to the Music Venues Trust, in acknowledgment of the essential function grassroots venues had in his early career.
"I personally couldn't be pursuing this success if it hadn't been for all the shows I performed around the North East, and elsewhere, when I was just getting going," stated Fender. "These venues are legendary, but they are facing challenges."
From early 2023 onward, over 150 of these venues have ceased operations – about 16 percent of the entire UK sector.
Recently, well-known musicians like Pulp, Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its efforts to support the industry, by adding a small levy to their admission fees, which benefits smaller concert halls.
Sam Fender also joined in, raising more than £100,000 on his recent tour to support thirty-eight local spots across the UK.
The donation assisted locations that were confronting possible closure due to difficulties arising from flooding, fire incidents and bereavements, as well as regulatory hurdles, legal disputes and noise complaints.
Some locations obtained financial assistance in modernizing infrastructure and gear that helped artists and audiences.
"The idea that funds from concerts in major spaces helps the smaller venues, where it begins for musicians like me, is just common sense," Fender has said.
The musician is not the first artist to contribute his award prize money to charitable organizations.
When the band won the award in 1996 for their album their work, frontman Cocker stated that the group would contribute their cash to the organization War Child.
That year, rapper and singer the artist split her award among a few good causes, such as the NSPCC and a Sickle Cell organization.
"And I contributed a grand to my local community centre, to their gymnastics program, because I did gymnastics when I was younger and they lacked new equipment," she explained to outlets.
Previously, they contributed their prize money to the youth organization that nurtured their act, as well as other local music groups.
And the 1994 recipients M People contributed their winnings to a multiple sclerosis charity after a close contact was diagnosed the disease.
"Receiving the award was quite enough," remarked singer the singer. "The cash was the cherry on top but we didn't require the cherry, because we had the cake. So our winning impacted somebody else's life."
In the past week, the MVT shared it had rescued a couple of small stages in the South East, by placing them under local control.
The Joiners in that area and The Croft in the city were purchased under the Own Our Venues scheme, which is supported by Arts Council England and supporters who buy "ownership units" in the properties.