The star has given the complete sum of his twenty-five thousand pound honor cash to the Music Venues Trust, which works to save the United Kingdom's independent concert spaces.
The star was presented with the prize on 16 October as his third album his work was declared the outstanding release of the last 12 months.
The musician has chosen to hand the money over to the MVT, in appreciation of the vital role grassroots venues had in his initial steps.
"I personally wouldn't be doing my current career if it weren't for all the gigs I played around the region, and beyond, when I was just getting going," said Fender. "These spaces are iconic, but they are struggling."
Since the start of 2023, more than 150 of these spaces have shut down – approximately one-sixth of the whole industry in the UK.
Over the past year, major artists like Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all backed the Music Venues Trust in its initiatives to help venues survive, by adding a small levy to their admission fees, which goes to help smaller concert halls.
Sam Fender also participated, generating more than £100,000 on his live tour to help numerous small stages across the UK.
The donation assisted venues that were confronting potential shutdown due to issues stemming from flooding, fires and personal losses, as well as permit problems, conflicts and sound issues.
Additional spaces received monetary aid in upgrading amenities and sound and lighting systems that positively impacted musicians and fans.
"The concept that funds from performances in large arenas supports the independent spots, where it all starts for musicians like me, is just sensible," the star has stated.
He is not the first artist to give his award funds to charitable organizations.
Back when the band received the trophy in 1996 for their record Different Class, lead singer Cocker stated that the band would donate their prize money to the non-profit War Child.
In 2002, rapper and singer the artist shared her prize between a few good causes, including the NSPCC and a Sickle Cell charity.
"Additionally, I gave a £1,000 to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was growing up and they needed better apparatus," Ms Dynamite explained to a publication.
Two years ago, the band gave their winnings to the community center that supported their band, alongside other independent music bodies.
Also 1994 winners they contributed their winnings to a MS organization after a friend was diagnosed the illness.
"Receiving the award was quite enough," stated artist the singer. "The prize was the extra but we didn't require the cherry, because we had the main prize. So our winning affected another person's life."
In the past week, the Music Venues Trust revealed it had rescued several local spots in south-east England, by transferring them to public stewardship.
One venue in the city and the second in the city were acquired under the Own Our Venues program, which is funded by Arts Council England and supporters who purchase "stakes" in the buildings.