The star has handed over the entirety of his twenty-five thousand pound honor cash to the Music Venues Trust, which functions to protect the UK's grassroots music venues.
He was awarded the prize on mid-October as his third album People Watching was declared the outstanding release of the previous year.
The musician has decided to donate the funds to the MVT, in acknowledgment of the vital role grassroots venues had in his initial steps.
"I personally couldn't be pursuing this success if it hadn't been for all the shows I performed around the region, and elsewhere, when I was beginning," said Sam Fender. "These venues are legendary, but they are struggling."
Beginning in 2023, at least 150 of these locations have permanently closed – roughly 16% of the total UK scene.
Over the past year, well-known musicians like Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the trust in its efforts to support the industry, by applying a small levy to their ticket costs, which supports local stages.
He also joined in, collecting more than £100,000 on his 2024 arena tour to assist 38 small stages across Britain.
These funds assisted spaces that were dealing with potential shutdown due to difficulties caused by flooding, fires and bereavements, as well as licensing issues, legal disputes and sound issues.
Other venues were granted monetary aid in modernizing amenities and sound and lighting systems that positively impacted performers and audiences.
"The concept that funds from concerts in big venues supports the independent spots, where it all starts for performers like me, is just common sense," Fender has said.
He is among several artists to give his honor winnings to good deeds.
Back when they earned the trophy in the year 1996 for their release their work, lead singer Cocker stated that the act would donate their prize money to the organization War Child.
In 2002, musician the artist divided her award between several charities, including the children's charity and a Sickle Cell charity.
"I also gave a £1,000 to my local community centre, to their gymnastics program, because I did gymnastics when I was younger and they required updated gear," Ms Dynamite told the media.
Previously, the band donated their funds to the local youth club that supported their band, alongside other independent music bodies.
Also 1994 winners they donated their award to a charity for MS after a friend was diagnosed the condition.
"The victory was ample," said singer the singer. "The prize was the bonus but we didn't need the extra, because we had the main prize. So our winning touched somebody else's life."
Recently, the Music Venues Trust shared it had saved a couple of grassroots venues in the South East, by placing them under community ownership.
One venue in the city and The Croft in Bristol were purchased under the Own Our Venues program, which is backed by the arts council and music fans who acquire "stakes" in the venues.