The artist has given the full amount of his £25,000 award cash to the Music Venues Trust, which functions to preserve the United Kingdom's independent music venues.
The star was presented with the cheque on 16 October as his third album his work was named the top album of the past year.
He has chosen to give the cash to the trust, in appreciation of the essential function grassroots venues had in his beginning days.
"As an artist would not have achieved this success if it hadn't been for all the shows I did around the area, and beyond, when I was just getting going," remarked Fender. "These venues are iconic, but they are struggling."
Beginning in 2023, over 150 of these locations have permanently closed – approximately one-sixth of the total UK scene.
Recently, major artists like the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its initiatives to help venues survive, by adding a modest fee to their admission fees, which supports independent venues.
Sam Fender also joined in, generating over £100k on his 2024 arena tour to support thirty-eight grassroots venues across the UK.
The donation assisted locations that were confronting potential shutdown due to challenges caused by flooding, fire incidents and personal losses, as well as licensing issues, court cases and noise complaints.
Other venues obtained funding support in upgrading amenities and technical equipment that positively impacted musicians and fans.
"The concept that money from shows in large arenas helps the smaller venues, where it all starts for artists like me, is just sensible," the star has said.
The musician is far from the only musician to give his honor prize money to good deeds.
Back when the band received the award in 1996 for their record Different Class, vocalist Jarvis Cocker announced that the group would donate their cash to the charity War Child.
That year, rapper and singer Ms Dynamite split her prize across several good causes, such as the children's charity and a Sickle Cell charity.
"Additionally, I gave a thousand pounds to the center, to their gymnastics program, because I trained in gymnastics when I was a child and they required better apparatus," she shared with outlets.
Two years ago, Ezra Collective donated their winnings to the local youth club that developed their act, in addition to other local music groups.
And winners that year M People gave their award to a multiple sclerosis charity after a friend was diagnosed the condition.
"Winning was quite enough," stated singer Heather Small. "The cash was the cherry on top but we could do without the bonus, because we had the honor. So our victory impacted the lives of others."
In the past week, the MVT shared it had protected two small stages in the South East, by placing them under public stewardship.
One venue in that area and the other in Bristol were bought under the community ownership program, which is backed by the arts council and music fans who acquire "stakes" in the properties.