The star has donated the full amount of his twenty-five thousand pound honor cash to the Music Venues Trust, which functions to protect the UK's small concert spaces.
The star was awarded the prize on 16 October as his third album People Watching was chosen as the top album of the previous year.
He has chosen to donate the funds to the trust, in recognition of the vital role grassroots venues played in his initial steps.
"I personally wouldn't be doing this success if it hadn't been for all the performances I played around the area, and beyond, when I was starting out," said Sam Fender. "These locations are renowned, but they are facing challenges."
Beginning in 2023, more than 150 of these venues have permanently closed – roughly 16 percent of the entire UK sector.
Recently, major artists including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the trust in its initiatives to keep the scene afloat, by including a small levy to their ticket prices, which goes to help independent venues.
Sam Fender also participated, generating in excess of £100,000 on his 2024 arena tour to help thirty-eight grassroots venues across England, Scotland, and Wales.
The donation supported locations that were dealing with potential shutdown due to challenges arising from floods, blazes and bereavements, as well as licensing issues, legal disputes and neighbor objections.
Other venues obtained funding support in modernizing amenities and sound and lighting systems that positively impacted artists and audiences.
"The notion that funds from performances in major spaces backs the local stages, where it all starts for artists like me, is just sensible," Sam Fender has stated.
Fender is among several artists to give his honor funds to charitable organizations.
In Pulp won the trophy in the year 1996 for their record Different Class, frontman the singer announced that the group would donate their cash to the charity the charity.
That year, rapper and singer Ms Dynamite split her bounty among multiple organizations, such as the children's charity and a Sickle Cell charity.
"And I gave a grand to Highgate Newtown, to their classes, because I practiced gymnastics when I was a child and they lacked updated gear," she shared with a publication.
Previously, the band contributed their prize money to the youth organization that developed their band, alongside other independent music bodies.
Also the 1994 recipients the group gave their winnings to a multiple sclerosis charity after a acquaintance was identified with the condition.
"Winning was sufficient," said singer Heather Small. "The cash was the bonus but we didn't need the cherry, because we had the cake. So our success impacted another person's life."
Recently, the Music Venues Trust announced it had rescued two grassroots venues in the South East, by placing them under public stewardship.
The first in Southampton and the second in Bristol were purchased under the Own Our Venues initiative, which is backed by Arts Council England and music fans who acquire "shares" in the buildings.