The artist has donated the entirety of his £25k honor cash to the Music Venues Trust, which operates to save the UK's small music venues.
He was presented with the prize on 16 October as his latest record People Watching was named the top album of the previous year.
The musician has chosen to hand the money over to the trust, in appreciation of the essential function local spots had in his beginning days.
"I personally wouldn't be doing this success if it wasn't for all the performances I performed around the area, and elsewhere, when I was just getting going," said Sam Fender. "These venues are legendary, but they are struggling."
From early 2023 onward, more than 150 of these locations have ceased operations – about 16% of the total UK scene.
Recently, well-known musicians like the band Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all backed the trust in its efforts to support the industry, by including a modest fee to their ticket costs, which goes to help local stages.
Sam Fender also took part, generating more than £100,000 on his live tour to assist thirty-eight small stages across Britain.
These funds assisted spaces that were confronting potential shutdown due to challenges caused by floods, blazes and family tragedies, as well as permit problems, legal disputes and noise complaints.
Other venues received financial assistance in modernizing facilities and technical equipment that positively impacted artists and fans.
"The concept that funds from shows in major spaces helps the smaller venues, where it all starts for performers like me, is just common sense," the star has stated.
Fender is not the first artist to donate his award prize money to charitable organizations.
When they earned the award in 1996 for their release the album, frontman Jarvis Cocker declared that the group would give their prize money to the charity War Child.
In 2002, rapper and singer the artist shared her prize across multiple organizations, such as the children's charity and a Sickle Cell charity.
"I also contributed a thousand pounds to the center, to their gymnastics class, because I practiced gymnastics when I was younger and they needed new equipment," the artist explained to the media.
Previously, the band donated their winnings to the youth organization that developed their band, alongside other grassroots music organisations.
And 1994 winners the group donated their prize to a charity for MS after a friend was diagnosed the illness.
"Winning was sufficient," said artist the singer. "The prize was the extra but we could do without the bonus, because we had the honor. So our winning affected another person's life."
Recently, the trust announced it had saved two small stages in that region, by placing them under public stewardship.
The Joiners in Southampton and the other in the city were acquired under the public acquisition scheme, which is backed by Arts Council England and enthusiasts who buy "ownership units" in the venues.