The star has given the full amount of his £25k honor cash to the MVT, which operates to save the Britain's grassroots live music spots.
The star was presented with the award on October 16 as his new release People Watching was declared the outstanding release of the past year.
Fender has chosen to hand the money over to the Music Venues Trust, in appreciation of the essential function grassroots venues played in his early career.
"I personally wouldn't be doing this success if it wasn't for all the performances I performed around the North East, and elsewhere, when I was starting out," remarked Fender. "These locations are renowned, but they are facing challenges."
Since the start of 2023, over 150 of these spaces have permanently closed – approximately 16 percent of the entire UK sector.
In the last year, major artists like Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its attempts to help venues survive, by applying a modest fee to their ticket costs, which goes to help smaller concert halls.
Sam Fender also took part, generating in excess of £100,000 on his 2024 arena tour to help numerous grassroots venues across Britain.
These funds supported locations that were dealing with possible closure due to difficulties stemming from water damage, fire incidents and bereavements, as well as permit problems, conflicts and sound issues.
Some locations were granted financial assistance in modernizing infrastructure and technical equipment that directly benefitted performers and concertgoers.
"The notion that revenue from performances in big venues backs the local stages, where it all starts for artists like me, is just common sense," Sam Fender has commented.
The musician is among several artists to contribute his award funds to charitable organizations.
When Pulp won the prize in the year 1996 for their album their work, frontman the singer declared that the act would contribute their cash to the organization War Child.
That year, musician she split her award between several organizations, including the NSPCC and a Sickle Cell charity.
"Additionally, I contributed a grand to the center, to their classes, because I trained in gymnastics when I was growing up and they needed better apparatus," the artist shared with outlets.
Two years ago, they contributed their prize money to the local youth club that nurtured their act, as well as other independent music bodies.
And the 1994 recipients the group donated their prize to a multiple sclerosis charity after a friend was found to have the illness.
"Receiving the award was quite enough," said vocalist Heather Small. "The prize was the cherry on top but we didn't require the cherry, because we had the honor. So our success impacted another person's life."
Last week, the MVT shared it had rescued a couple of grassroots venues in the South East, by transferring them to local control.
The first in Southampton and The Croft in Bristol were purchased under the Own Our Venues initiative, which is backed by Arts Council England and music fans who acquire "ownership units" in the venues.
