The artist has given the entirety of his £25k award cash to the Music Venues Trust, which functions to preserve the United Kingdom's grassroots music venues.
He was presented with the prize on October 16 as his third album People Watching was named the outstanding release of the past year.
The musician has decided to give the cash to the MVT, in acknowledgment of the vital role grassroots venues had in his early career.
"As an artist couldn't be pursuing what I am doing today if it hadn't been for all the gigs I did around the region, and beyond, when I was beginning," stated Fender. "These venues are iconic, but they are in difficulty."
Beginning in 2023, at least 150 of these locations have shut down – about 16 percent of the entire UK sector.
Recently, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its efforts to keep the scene afloat, by including a modest fee to their ticket costs, which goes to help local stages.
Sam Fender also participated, collecting more than £100,000 on his 2024 arena tour to assist thirty-eight grassroots venues across Britain.
The money supported spaces that were facing imminent closure due to issues caused by water damage, fires and personal losses, as well as regulatory hurdles, court cases and sound issues.
Other venues were granted financial assistance in improving infrastructure and sound and lighting systems that positively impacted performers and fans.
"The notion that revenue from performances in major spaces supports the smaller venues, where it all starts for musicians like me, is just common sense," Sam Fender has commented.
He is far from the only musician to contribute his honor prize money to charitable organizations.
In Pulp earned the trophy in the mid-90s for their release the album, frontman the singer announced that the act would contribute their winnings to the organization the charity.
In 2002, rapper and singer she divided her prize between a few charities, such as the NSPCC and a charity for Sickle Cell.
"And I gave a grand to my local community centre, to their gymnastics class, because I practiced gymnastics when I was younger and they lacked new equipment," the artist shared with a publication.
Two years ago, Ezra Collective donated their prize money to the youth organization that developed their act, in addition to other local music groups.
And the 1994 recipients the group contributed their prize to a multiple sclerosis charity after a acquaintance was identified with the disease.
"The victory was ample," remarked singer the singer. "The prize was the extra but we didn't need the cherry, because we had the cake. So our victory impacted somebody else's life."
Last week, the MVT announced it had protected two local spots in south-east England, by placing them under public stewardship.
The Joiners in the city and the second in the city were purchased under the community ownership scheme, which is supported by the arts council and enthusiasts who purchase "ownership units" in the venues.