The artist has handed over the full amount of his twenty-five thousand pound honor cash to the Music Venues Trust, which operates to preserve the Britain's small concert spaces.
Fender was awarded the cheque on mid-October as his new release his work was named the outstanding release of the previous year.
He has decided to donate the funds to the trust, in recognition of the crucial part small stages had in his early career.
"I couldn't be pursuing this success if it wasn't for all the shows I played around the area, and further afield, when I was beginning," said the artist. "These locations are legendary, but they are struggling."
Since the start of 2023, at least 150 of these spaces have permanently closed – approximately one-sixth of the whole industry in the UK.
Recently, major artists such as Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its attempts to keep the scene afloat, by adding a small levy to their ticket costs, which benefits local stages.
Fender also joined in, raising more than £100,000 on his 2024 arena tour to assist thirty-eight local spots across England, Scotland, and Wales.
These funds helped spaces that were confronting imminent closure due to issues arising from water damage, fires and family tragedies, as well as regulatory hurdles, conflicts and noise complaints.
Other venues received monetary aid in upgrading amenities and sound and lighting systems that helped musicians and audiences.
"The notion that revenue from shows in major spaces backs the local stages, where it all starts for artists like me, is just logical," Sam Fender has commented.
Fender is among several artists to contribute his award funds to worthy causes.
When the band earned the prize in the mid-90s for their album the album, vocalist Jarvis Cocker declared that the band would donate their prize money to the organization the charity.
During 2002, musician Ms Dynamite shared her bounty among a few good causes, such as the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a £1,000 to the center, to their classes, because I did gymnastics when I was growing up and they required better apparatus," she told a publication.
Previously, they contributed their winnings to the youth organization that supported their act, in addition to other grassroots music organisations.
Also 1994 winners the group contributed their winnings to a charity for MS after a friend was diagnosed the disease.
"Receiving the award was ample," remarked singer Heather Small. "The prize was the bonus but we didn't need the extra, because we had the honor. So our winning impacted the lives of others."
In the past week, the Music Venues Trust revealed it had protected several grassroots venues in the South East, by placing them under community ownership.
The Joiners in that area and the second in Bristol were purchased under the Own Our Venues program, which is funded by the arts council and music fans who acquire "ownership units" in the buildings.
