The artist has handed over the complete sum of his £25k award cash to the MVT, which operates to preserve the UK's grassroots live music spots.
He was awarded the prize on mid-October as his latest record People Watching was named the outstanding release of the previous year.
He has chosen to hand the money over to the Music Venues Trust, in appreciation of the vital role local spots played in his beginning days.
"I wouldn't be doing my current career if it wasn't for all the performances I performed around the North East, and elsewhere, when I was just getting going," remarked Fender. "These locations are legendary, but they are facing challenges."
Beginning in 2023, over 150 of these locations have permanently closed – approximately one-sixth of the entire UK sector.
Over the past year, well-known musicians like the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its efforts to keep the scene afloat, by adding a small levy to their admission fees, which goes to help smaller concert halls.
He also took part, collecting over £100k on his recent tour to help 38 grassroots venues across Britain.
The money assisted venues that were confronting imminent closure due to issues arising from flooding, fire incidents and family tragedies, as well as permit problems, conflicts and noise complaints.
Other venues were granted financial assistance in modernizing infrastructure and technical equipment that positively impacted performers and fans.
"The concept that revenue from concerts in major spaces backs the smaller venues, where it begins for performers like me, is just common sense," Sam Fender has commented.
He is far from the only musician to donate his honor winnings to charitable organizations.
Back when Pulp received the prize in the year 1996 for their album their work, frontman the singer stated that the group would give their prize money to the non-profit War Child.
In 2002, rapper and singer Ms Dynamite shared her bounty between several organizations, like the NSPCC and a Sickle Cell organization.
"Additionally, I donated a grand to Highgate Newtown, to their gymnastics class, because I practiced gymnastics when I was younger and they lacked updated gear," the artist explained to outlets.
Two years ago, the band gave their prize money to the community center that developed their group, alongside other grassroots music organisations.
Also the 1994 recipients they gave their winnings to a multiple sclerosis charity after a close contact was identified with the condition.
"The victory was sufficient," remarked artist Heather Small. "The money was the bonus but we didn't need the bonus, because we had the cake. So our winning impacted somebody else's life."
In the past week, the MVT revealed it had protected two small stages in south-east England, by bringing them into community ownership.
The Joiners in the city and The Croft in Bristol were purchased under the public acquisition program, which is funded by a national body and supporters who acquire "shares" in the properties.
