The artist has donated the full amount of his twenty-five thousand pound honor cash to the Music Venues Trust, which works to save the Britain's independent music venues.
The star was awarded the award on October 16 as his new release his work was named the best record of the past year.
Fender has decided to donate the funds to the Music Venues Trust, in appreciation of the vital role local spots fulfilled in his early career.
"As an artist wouldn't be doing what I am doing today if it weren't for all the shows I performed around the North East, and beyond, when I was beginning," stated Sam Fender. "These venues are iconic, but they are in difficulty."
From early 2023 onward, at least 150 of these venues have ceased operations – roughly one-sixth of the whole industry in the UK.
In the last year, major artists including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its efforts to support the industry, by applying a modest fee to their ticket costs, which benefits smaller concert halls.
Fender also participated, generating over £100k on his 2024 arena tour to help 38 grassroots venues across England, Scotland, and Wales.
The money assisted spaces that were dealing with potential shutdown due to difficulties caused by flooding, fire incidents and personal losses, as well as regulatory hurdles, court cases and noise complaints.
Some locations were granted monetary aid in improving facilities and sound and lighting systems that positively impacted musicians and fans.
"The idea that funds from performances in big venues helps the smaller venues, where it begins for musicians like me, is just common sense," the star has commented.
Fender is not the first artist to contribute his award prize money to good deeds.
When Pulp earned the prize in the mid-90s for their album the album, lead singer the singer announced that the band would give their cash to the charity War Child.
In 2002, rapper and singer the artist shared her bounty among multiple organizations, including the children's charity and a Sickle Cell charity.
"And I donated a grand to Highgate Newtown, to their classes, because I did gymnastics when I was a child and they lacked new equipment," she told the media.
Two years ago, the band contributed their winnings to the youth organization that nurtured their group, alongside other local music groups.
Additionally winners that year M People donated their award to a multiple sclerosis charity after a friend was identified with the disease.
"Receiving the award was sufficient," stated vocalist Heather Small. "The prize was the cherry on top but we didn't require the bonus, because we had the honor. So our victory touched somebody else's life."
Recently, the MVT shared it had rescued a couple of local spots in the South East, by placing them under community ownership.
One venue in that area and the second in the city were purchased under the community ownership scheme, which is supported by a national body and enthusiasts who acquire "stakes" in the buildings.