The artist has given the entirety of his £25,000 honor cash to the Music Venues Trust, which functions to preserve the Britain's independent concert spaces.
He was awarded the prize on October 16 as his third album People Watching was chosen as the outstanding release of the last 12 months.
He has opted to give the cash to the MVT, in recognition of the vital role grassroots venues had in his early career.
"I personally wouldn't be doing what I am doing today if it weren't for all the gigs I performed around the area, and beyond, when I was just getting going," stated Sam Fender. "These locations are legendary, but they are facing challenges."
From early 2023 onward, at least 150 of these spaces have shut down – about 16% of the total UK scene.
Recently, well-known musicians like Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to help venues survive, by adding a small levy to their ticket prices, which benefits independent venues.
Fender also participated, collecting in excess of £100,000 on his recent tour to support numerous local spots across the UK.
These funds assisted locations that were confronting possible closure due to challenges caused by flooding, blazes and personal losses, as well as licensing issues, conflicts and noise complaints.
Some locations received monetary aid in upgrading infrastructure and sound and lighting systems that directly benefitted artists and audiences.
"The idea that funds from shows in big venues supports the smaller venues, where it kicks off for performers like me, is just logical," Sam Fender has said.
He is far from the only musician to donate his award prize money to charitable organizations.
Back when the band won the trophy in 1996 for their release Different Class, lead singer Cocker stated that the group would donate their cash to the organization War Child.
In 2002, artist Ms Dynamite shared her prize across several good causes, including the NSPCC and a Sickle Cell charity.
"I also contributed a £1,000 to my local community centre, to their classes, because I did gymnastics when I was growing up and they required better apparatus," Ms Dynamite shared with a publication.
In recent years, the band donated their prize money to the local youth club that developed their act, in addition to other grassroots music organisations.
Additionally 1994 winners M People donated their award to a multiple sclerosis charity after a close contact was found to have the condition.
"The victory was ample," stated vocalist Small. "The cash was the extra but we didn't need the cherry, because we had the honor. So our victory impacted another person's life."
Recently, the Music Venues Trust revealed it had rescued two grassroots venues in the South East, by placing them under public stewardship.
The Joiners in Southampton and The Croft in the city were bought under the community ownership scheme, which is supported by a national body and music fans who buy "ownership units" in the venues.
