The star has handed over the entirety of his twenty-five thousand pound award cash to the Music Venues Trust, which functions to protect the UK's grassroots live music spots.
Fender was presented with the award on mid-October as his new release People Watching was named the top album of the last 12 months.
The musician has decided to give the cash to the trust, in recognition of the essential function local spots had in his initial steps.
"I personally couldn't be pursuing this success if it wasn't for all the gigs I did around the region, and elsewhere, when I was just getting going," said the artist. "These spaces are legendary, but they are facing challenges."
From early 2023 onward, over 150 of these venues have ceased operations – roughly 16 percent of the whole industry in the UK.
In the last year, top acts including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the trust in its initiatives to keep the scene afloat, by applying a small levy to their ticket prices, which supports independent venues.
Sam Fender also joined in, collecting over £100k on his recent tour to help 38 local spots across Britain.
The money supported spaces that were dealing with imminent closure due to challenges stemming from flooding, blazes and bereavements, as well as permit problems, court cases and sound issues.
Additional spaces were granted monetary aid in upgrading amenities and technical equipment that positively impacted musicians and audiences.
"The concept that revenue from shows in large arenas backs the local stages, where it begins for musicians like me, is just sensible," the star has commented.
He is not the first artist to give his award winnings to good deeds.
When they earned the trophy in the year 1996 for their release the album, vocalist Cocker announced that the band would contribute their prize money to the organization War Child.
In 2002, musician Ms Dynamite split her prize between a few organizations, including the children's charity and a Sickle Cell charity.
"I also contributed a £1,000 to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was growing up and they needed better apparatus," she explained to a publication.
Previously, they contributed their winnings to the local youth club that nurtured their act, as well as other local music groups.
And winners that year M People gave their award to a charity for MS after a friend was identified with the disease.
"The victory was quite enough," said artist Heather Small. "The money was the bonus but we didn't require the extra, because we had the main prize. So our success affected the lives of others."
Last week, the MVT shared it had protected two local spots in south-east England, by transferring them to local control.
One venue in Southampton and the other in that location were purchased under the community ownership initiative, which is funded by the arts council and supporters who acquire "ownership units" in the buildings.