The star has handed over the full amount of his £25k honor winnings to the Music Venues Trust, which operates to protect the Britain's grassroots concert spaces.
The star was awarded the award on 16 October as his latest record People Watching was chosen as the outstanding release of the last 12 months.
The musician has chosen to donate the funds to the MVT, in appreciation of the crucial part small stages played in his initial steps.
"As an artist would not have achieved this success if it wasn't for all the shows I did around the area, and further afield, when I was starting out," said the artist. "These locations are legendary, but they are in difficulty."
Beginning in 2023, at least 150 of these venues have permanently closed – roughly 16% of the total UK scene.
Recently, major artists like Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to help venues survive, by including a modest fee to their ticket prices, which benefits independent venues.
Sam Fender also joined in, raising over £100k on his recent tour to assist 38 small stages across England, Scotland, and Wales.
The donation helped venues that were facing potential shutdown due to difficulties arising from floods, fires and personal losses, as well as licensing issues, conflicts and neighbor objections.
Some locations received financial assistance in upgrading infrastructure and technical equipment that helped artists and fans.
"The idea that funds from concerts in big venues backs the local stages, where it all starts for performers like me, is just common sense," the star has commented.
Fender is far from the only musician to contribute his honor prize money to good deeds.
When the band earned the prize in 1996 for their album their work, frontman the singer stated that the group would give their cash to the charity War Child.
In 2002, rapper and singer she shared her bounty between a few charities, including the NSPCC and a Sickle Cell charity.
"Additionally, I gave a grand to my local community centre, to their gymnastics program, because I practiced gymnastics when I was growing up and they required new equipment," the artist told outlets.
Two years ago, they contributed their prize money to the youth organization that supported their group, in addition to other grassroots music organisations.
Additionally the 1994 recipients they gave their winnings to a charity for MS after a close contact was identified with the condition.
"Receiving the award was quite enough," stated singer the singer. "The cash was the bonus but we could do without the extra, because we had the honor. So our success affected somebody else's life."
In the past week, the trust shared it had protected a couple of small stages in that region, by placing them under community ownership.
The Joiners in that area and the second in that location were bought under the Own Our Venues program, which is backed by Arts Council England and supporters who buy "stakes" in the buildings.