The artist has given the entirety of his £25k award cash to the Music Venues Trust, which operates to preserve the UK's independent music venues.
The star was given the cheque on mid-October as his latest record People Watching was named the outstanding release of the last 12 months.
The musician has chosen to hand the money over to the Music Venues Trust, in acknowledgment of the crucial part grassroots venues played in his early career.
"I personally couldn't be pursuing what I am doing today if it hadn't been for all the performances I did around the North East, and elsewhere, when I was starting out," said Fender. "These spaces are iconic, but they are facing challenges."
Since the start of 2023, more than 150 of these venues have shut down – approximately 16% of the whole industry in the UK.
Recently, major artists like Pulp, Coldplay, the singer Katy Perry and Sheeran have all supported the MVT in its initiatives to keep the scene afloat, by including a minor surcharge to their ticket costs, which goes to help local stages.
He also joined in, collecting in excess of £100,000 on his recent tour to help numerous small stages across the UK.
The money supported spaces that were dealing with imminent closure due to challenges caused by flooding, blazes and personal losses, as well as licensing issues, court cases and noise complaints.
Some locations received financial assistance in modernizing infrastructure and gear that directly benefitted performers and audiences.
"The idea that funds from shows in major spaces supports the smaller venues, where it all starts for musicians like me, is just sensible," Sam Fender has commented.
He is among several artists to donate his honor prize money to good deeds.
In they received the trophy in the mid-90s for their record their work, vocalist Jarvis Cocker announced that the group would donate their prize money to the organization the charity.
In 2002, musician the artist divided her prize among multiple organizations, including the children's charity and a charity for Sickle Cell.
"And I gave a £1,000 to the center, to their classes, because I did gymnastics when I was growing up and they required new equipment," the artist told a publication.
Two years ago, the band contributed their winnings to the local youth club that nurtured their act, alongside other independent music bodies.
And 1994 winners M People donated their award to a multiple sclerosis charity after a friend was found to have the condition.
"Receiving the award was quite enough," stated artist the singer. "The money was the cherry on top but we could do without the cherry, because we had the cake. So our success touched somebody else's life."
In the past week, the trust revealed it had rescued several small stages in south-east England, by placing them under local control.
The first in the city and the second in the city were bought under the community ownership scheme, which is supported by a national body and enthusiasts who purchase "ownership units" in the venues.
