The star has donated the entirety of his £25,000 award cash to the Music Venues Trust, which functions to protect the UK's independent live music spots.
Fender was awarded the cheque on 16 October as his latest record People Watching was named the outstanding release of the previous year.
He has opted to give the cash to the MVT, in acknowledgment of the crucial part local spots fulfilled in his early career.
"I would not have achieved this success if it hadn't been for all the shows I performed around the North East, and further afield, when I was just getting going," said Fender. "These venues are iconic, but they are in difficulty."
Since the start of 2023, at least 150 of these venues have permanently closed – approximately 16 percent of the whole industry in the UK.
Recently, well-known musicians including Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to keep the scene afloat, by adding a modest fee to their admission fees, which goes to help local stages.
Fender also took part, collecting more than £100,000 on his recent tour to help 38 local spots across England, Scotland, and Wales.
The money supported venues that were confronting potential shutdown due to issues arising from flooding, blazes and family tragedies, as well as licensing issues, conflicts and neighbor objections.
Additional spaces obtained monetary aid in upgrading amenities and technical equipment that positively impacted performers and fans.
"The idea that funds from concerts in large arenas backs the smaller venues, where it all starts for musicians like me, is just logical," Sam Fender has commented.
He is among several artists to donate his award prize money to good deeds.
In they received the award in the year 1996 for their record Different Class, vocalist the singer declared that the band would contribute their winnings to the organization War Child.
In 2002, musician the artist shared her prize across multiple charities, such as the NSPCC and a charity for Sickle Cell.
"And I gave a thousand pounds to my local community centre, to their classes, because I trained in gymnastics when I was growing up and they needed better apparatus," she explained to a publication.
In recent years, they donated their prize money to the local youth club that supported their act, as well as other local music groups.
And 1994 winners the group contributed their winnings to a multiple sclerosis charity after a acquaintance was identified with the disease.
"Receiving the award was sufficient," stated vocalist Heather Small. "The prize was the extra but we didn't require the cherry, because we had the main prize. So our success impacted somebody else's life."
Last week, the MVT revealed it had rescued a couple of local spots in the South East, by placing them under community ownership.
One venue in the city and the second in that location were acquired under the community ownership scheme, which is backed by a national body and music fans who purchase "stakes" in the venues.
