The star has given the complete sum of his £25k honor cash to the Music Venues Trust, which functions to save the UK's small live music spots.
The star was presented with the award on 16 October as his new release People Watching was chosen as the best record of the previous year.
The musician has opted to give the cash to the Music Venues Trust, in acknowledgment of the essential function small stages played in his early career.
"I personally would not have achieved what I am doing today if it weren't for all the performances I did around the North East, and elsewhere, when I was beginning," stated Sam Fender. "These locations are renowned, but they are facing challenges."
Beginning in 2023, at least 150 of these locations have shut down – approximately 16% of the entire UK sector.
In the last year, major artists including the band Pulp, Coldplay, Katy Perry and Sheeran have all backed the trust in its initiatives to support the industry, by adding a small levy to their admission fees, which benefits independent venues.
Sam Fender also took part, generating in excess of £100,000 on his recent tour to help numerous local spots across Britain.
These funds supported spaces that were dealing with imminent closure due to issues stemming from floods, fires and family tragedies, as well as regulatory hurdles, conflicts and sound issues.
Some locations obtained financial assistance in improving infrastructure and gear that helped artists and concertgoers.
"The notion that funds from shows in big venues backs the independent spots, where it all starts for performers like me, is just logical," the star has commented.
The musician is not the first artist to donate his honor prize money to good deeds.
Back when Pulp received the prize in the year 1996 for their record Different Class, vocalist Jarvis Cocker announced that the group would give their prize money to the charity War Child.
That year, artist Ms Dynamite shared her prize between a few organizations, like the NSPCC and a charity for Sickle Cell.
"And I contributed a grand to the center, to their gymnastics class, because I trained in gymnastics when I was younger and they required new equipment," Ms Dynamite told outlets.
Two years ago, they donated their prize money to the local youth club that nurtured their band, in addition to other local music groups.
Also the 1994 recipients the group donated their award to a MS organization after a friend was found to have the disease.
"Receiving the award was quite enough," remarked singer Heather Small. "The prize was the extra but we could do without the extra, because we had the main prize. So our winning impacted another person's life."
Recently, the MVT announced it had saved two local spots in south-east England, by placing them under public stewardship.
The Joiners in Southampton and The Croft in Bristol were acquired under the public acquisition scheme, which is backed by a national body and enthusiasts who buy "stakes" in the buildings.
