The artist has donated the entirety of his twenty-five thousand pound honor cash to the Music Venues Trust, which functions to preserve the UK's small live music spots.
He was presented with the award on October 16 as his new release his work was declared the outstanding release of the past year.
He has chosen to donate the funds to the MVT, in appreciation of the vital role grassroots venues had in his beginning days.
"I would not have achieved what I am doing today if it wasn't for all the performances I did around the area, and elsewhere, when I was beginning," remarked Sam Fender. "These venues are legendary, but they are facing challenges."
Beginning in 2023, more than 150 of these spaces have shut down – about one-sixth of the whole industry in the UK.
Recently, major artists such as the band Pulp, Coldplay, Katy Perry and Sheeran have all supported the MVT in its initiatives to keep the scene afloat, by applying a small levy to their ticket costs, which benefits independent venues.
Fender also participated, collecting more than £100,000 on his live tour to assist thirty-eight local spots across England, Scotland, and Wales.
The money supported spaces that were confronting possible closure due to issues caused by floods, fires and personal losses, as well as licensing issues, court cases and noise complaints.
Some locations obtained funding support in modernizing amenities and sound and lighting systems that helped artists and audiences.
"The concept that funds from performances in major spaces helps the local stages, where it all starts for artists like me, is just logical," the star has commented.
Fender is among several artists to give his honor prize money to charitable organizations.
When they won the trophy in 1996 for their release Different Class, frontman Cocker announced that the band would give their prize money to the non-profit the charity.
During 2002, artist Ms Dynamite shared her bounty across several charities, including the NSPCC and a charity for Sickle Cell.
"And I donated a £1,000 to the center, to their gymnastics class, because I practiced gymnastics when I was a child and they required new equipment," the artist told outlets.
Two years ago, they gave their funds to the community center that developed their act, in addition to other independent music bodies.
And the 1994 recipients M People contributed their winnings to a MS organization after a close contact was found to have the condition.
"Winning was sufficient," remarked singer Small. "The cash was the cherry on top but we could do without the extra, because we had the main prize. So our victory impacted another person's life."
Recently, the MVT shared it had rescued two small stages in south-east England, by placing them under local control.
The first in Southampton and the second in the city were acquired under the Own Our Venues initiative, which is funded by Arts Council England and music fans who purchase "stakes" in the buildings.