The star has given the full amount of his £25,000 award winnings to the MVT, which operates to preserve the UK's small live music spots.
The star was given the award on October 16 as his third album the album was chosen as the top album of the last 12 months.
Fender has chosen to donate the funds to the Music Venues Trust, in acknowledgment of the vital role small stages had in his initial steps.
"I couldn't be pursuing this success if it wasn't for all the shows I played around the region, and beyond, when I was beginning," said the artist. "These venues are legendary, but they are facing challenges."
Since the start of 2023, more than 150 of these venues have shut down – roughly 16 percent of the whole industry in the UK.
Recently, top acts like Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its attempts to help venues survive, by applying a small levy to their admission fees, which goes to help independent venues.
He also took part, raising in excess of £100,000 on his 2024 arena tour to support numerous local spots across the UK.
The donation supported locations that were dealing with potential shutdown due to issues arising from floods, blazes and bereavements, as well as licensing issues, legal disputes and noise complaints.
Some locations received financial assistance in upgrading facilities and technical equipment that positively impacted artists and fans.
"The idea that money from shows in large arenas backs the independent spots, where it kicks off for performers like me, is just sensible," Sam Fender has commented.
Fender is far from the only musician to donate his award prize money to worthy causes.
In the band won the prize in the year 1996 for their release their work, lead singer Cocker stated that the band would give their winnings to the charity War Child.
During 2002, musician Ms Dynamite divided her prize across multiple charities, including the NSPCC and a charity for Sickle Cell.
"Additionally, I contributed a grand to the center, to their gymnastics class, because I practiced gymnastics when I was a child and they lacked new equipment," the artist explained to a publication.
In recent years, they gave their funds to the local youth club that nurtured their act, in addition to other independent music bodies.
Also 1994 winners the group contributed their award to a multiple sclerosis charity after a friend was diagnosed the condition.
"The victory was sufficient," remarked artist the singer. "The cash was the bonus but we didn't need the extra, because we had the honor. So our winning impacted somebody else's life."
Last week, the Music Venues Trust shared it had rescued two local spots in that region, by bringing them into local control.
One venue in that area and The Croft in Bristol were bought under the public acquisition program, which is backed by Arts Council England and enthusiasts who acquire "ownership units" in the buildings.