The star has handed over the entirety of his £25k award cash to the Music Venues Trust, which works to preserve the Britain's small music venues.
Fender was awarded the award on mid-October as his third album People Watching was chosen as the best record of the last 12 months.
The musician has opted to give the cash to the trust, in acknowledgment of the vital role small stages played in his early career.
"As an artist couldn't be pursuing what I am doing today if it wasn't for all the performances I did around the North East, and beyond, when I was beginning," said Fender. "These locations are legendary, but they are facing challenges."
Beginning in 2023, over 150 of these locations have permanently closed – about one-sixth of the entire UK sector.
Recently, top acts including Pulp, Coldplay, Katy Perry and Sheeran have all supported the trust in its initiatives to support the industry, by adding a minor surcharge to their admission fees, which supports independent venues.
Sam Fender also participated, generating in excess of £100,000 on his 2024 arena tour to assist thirty-eight local spots across Britain.
These funds helped venues that were dealing with imminent closure due to issues caused by flooding, fire incidents and personal losses, as well as licensing issues, court cases and sound issues.
Additional spaces received funding support in upgrading facilities and sound and lighting systems that helped artists and concertgoers.
"The concept that funds from concerts in large arenas supports the local stages, where it kicks off for artists like me, is just sensible," the star has said.
Fender is among several artists to donate his award winnings to charitable organizations.
Back when they won the trophy in the year 1996 for their album their work, vocalist the singer stated that the group would give their cash to the organization War Child.
During 2002, musician she split her bounty across several good causes, including the NSPCC and a Sickle Cell charity.
"Additionally, I donated a thousand pounds to my local community centre, to their gymnastics class, because I did gymnastics when I was a child and they required better apparatus," she told a publication.
Two years ago, the band donated their prize money to the local youth club that supported their act, as well as other independent music bodies.
Additionally the 1994 recipients they gave their prize to a multiple sclerosis charity after a friend was diagnosed the illness.
"Receiving the award was ample," said vocalist Small. "The money was the bonus but we could do without the bonus, because we had the cake. So our winning touched another person's life."
Recently, the Music Venues Trust announced it had saved several grassroots venues in the South East, by bringing them into local control.
One venue in that area and The Croft in Bristol were purchased under the community ownership scheme, which is backed by Arts Council England and supporters who buy "stakes" in the buildings.