The star has handed over the full amount of his £25k award cash to the MVT, which operates to preserve the UK's independent music venues.
He was presented with the prize on October 16 as his new release People Watching was declared the top album of the last 12 months.
The musician has chosen to hand the money over to the trust, in acknowledgment of the vital role local spots played in his beginning days.
"I personally would not have achieved my current career if it weren't for all the performances I played around the region, and beyond, when I was just getting going," stated Fender. "These spaces are iconic, but they are in difficulty."
Beginning in 2023, more than 150 of these locations have ceased operations – approximately one-sixth of the entire UK sector.
In the last year, well-known musicians like Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its efforts to help venues survive, by applying a small levy to their admission fees, which supports smaller concert halls.
Fender also participated, generating over £100k on his 2024 arena tour to help thirty-eight local spots across England, Scotland, and Wales.
These funds assisted spaces that were confronting potential shutdown due to challenges arising from flooding, blazes and bereavements, as well as regulatory hurdles, court cases and neighbor objections.
Other venues were granted monetary aid in improving amenities and gear that positively impacted performers and fans.
"The idea that money from shows in large arenas helps the local stages, where it begins for artists like me, is just logical," Sam Fender has commented.
Fender is not the first artist to donate his award prize money to worthy causes.
When Pulp won the prize in 1996 for their release the album, frontman Cocker announced that the band would give their cash to the organization War Child.
In 2002, musician she shared her award between a few organizations, such as the children's charity and a Sickle Cell charity.
"And I donated a thousand pounds to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was a child and they needed new equipment," Ms Dynamite told a publication.
In recent years, the band contributed their funds to the community center that supported their band, in addition to other local music groups.
Also winners that year M People contributed their prize to a MS organization after a acquaintance was diagnosed the condition.
"The victory was sufficient," said singer Heather Small. "The cash was the extra but we could do without the cherry, because we had the main prize. So our victory impacted the lives of others."
Recently, the MVT announced it had rescued a couple of small stages in south-east England, by transferring them to public stewardship.
The Joiners in the city and the other in Bristol were bought under the public acquisition scheme, which is backed by Arts Council England and music fans who acquire "ownership units" in the properties.