The star has handed over the full amount of his £25,000 honor cash to the trust for venues, which works to protect the Britain's grassroots live music spots.
Fender was given the prize on mid-October as his third album his work was chosen as the outstanding release of the past year.
He has opted to donate the funds to the Music Venues Trust, in recognition of the crucial part local spots played in his beginning days.
"I personally wouldn't be doing what I am doing today if it weren't for all the performances I played around the North East, and elsewhere, when I was just getting going," said Sam Fender. "These venues are renowned, but they are struggling."
From early 2023 onward, at least 150 of these locations have ceased operations – approximately 16 percent of the whole industry in the UK.
Recently, well-known musicians like the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its initiatives to keep the scene afloat, by adding a minor surcharge to their ticket prices, which supports smaller concert halls.
He also took part, generating over £100k on his 2024 arena tour to assist thirty-eight local spots across England, Scotland, and Wales.
These funds helped venues that were facing imminent closure due to challenges stemming from water damage, fires and personal losses, as well as regulatory hurdles, court cases and neighbor objections.
Additional spaces obtained financial assistance in upgrading infrastructure and technical equipment that directly benefitted performers and concertgoers.
"The idea that money from performances in large arenas backs the independent spots, where it kicks off for performers like me, is just sensible," Fender has stated.
The musician is not the first artist to contribute his honor prize money to good deeds.
Back when they received the trophy in the year 1996 for their release their work, frontman Cocker announced that the group would donate their cash to the non-profit War Child.
That year, artist Ms Dynamite shared her prize between multiple charities, including the NSPCC and a Sickle Cell charity.
"I also gave a thousand pounds to the center, to their gymnastics class, because I did gymnastics when I was growing up and they lacked better apparatus," the artist explained to outlets.
Two years ago, Ezra Collective gave their funds to the community center that nurtured their group, as well as other independent music bodies.
And the 1994 recipients M People contributed their winnings to a charity for MS after a friend was found to have the illness.
"Receiving the award was ample," stated singer the singer. "The prize was the extra but we could do without the cherry, because we had the main prize. So our success touched another person's life."
Last week, the trust announced it had rescued several grassroots venues in the South East, by placing them under local control.
The Joiners in the city and The Croft in the city were purchased under the Own Our Venues initiative, which is supported by the arts council and enthusiasts who buy "shares" in the properties.