The star has handed over the complete sum of his £25,000 award winnings to the Music Venues Trust, which operates to protect the Britain's grassroots concert spaces.
He was given the prize on October 16 as his latest record People Watching was named the outstanding release of the previous year.
He has decided to give the cash to the Music Venues Trust, in appreciation of the crucial part small stages had in his early career.
"As an artist couldn't be pursuing what I am doing today if it hadn't been for all the performances I did around the area, and beyond, when I was just getting going," remarked Sam Fender. "These spaces are legendary, but they are struggling."
Since the start of 2023, at least 150 of these venues have shut down – about one-sixth of the entire UK sector.
In the last year, major artists such as Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all backed the MVT in its initiatives to keep the scene afloat, by including a modest fee to their admission fees, which benefits local stages.
Fender also took part, generating more than £100,000 on his live tour to help 38 small stages across Britain.
The money helped venues that were facing potential shutdown due to challenges stemming from water damage, fire incidents and personal losses, as well as permit problems, court cases and noise complaints.
Some locations obtained financial assistance in improving amenities and sound and lighting systems that directly benefitted musicians and audiences.
"The idea that money from performances in big venues backs the local stages, where it kicks off for musicians like me, is just logical," Sam Fender has stated.
The musician is far from the only musician to contribute his honor prize money to worthy causes.
In Pulp won the prize in the mid-90s for their record their work, lead singer Jarvis Cocker declared that the act would donate their cash to the non-profit War Child.
In 2002, rapper and singer Ms Dynamite split her prize between several good causes, like the NSPCC and a Sickle Cell organization.
"Additionally, I donated a £1,000 to Highgate Newtown, to their classes, because I trained in gymnastics when I was younger and they required new equipment," Ms Dynamite shared with the media.
Previously, the band gave their funds to the community center that nurtured their band, in addition to other grassroots music organisations.
And 1994 winners they donated their prize to a multiple sclerosis charity after a close contact was diagnosed the disease.
"Receiving the award was ample," said artist the singer. "The money was the bonus but we could do without the bonus, because we had the main prize. So our winning affected the lives of others."
In the past week, the MVT shared it had saved a couple of local spots in the South East, by transferring them to public stewardship.
One venue in Southampton and The Croft in the city were purchased under the Own Our Venues initiative, which is backed by the arts council and supporters who buy "shares" in the venues.