The star has handed over the full amount of his £25,000 honor winnings to the MVT, which operates to protect the UK's small music venues.
Fender was presented with the prize on October 16 as his latest record his work was named the top album of the past year.
The musician has decided to donate the funds to the Music Venues Trust, in acknowledgment of the vital role grassroots venues had in his initial steps.
"I personally would not have achieved what I am doing today if it wasn't for all the performances I did around the region, and beyond, when I was beginning," remarked Fender. "These locations are renowned, but they are in difficulty."
Beginning in 2023, at least 150 of these venues have ceased operations – roughly 16 percent of the entire UK sector.
Over the past year, well-known musicians including the band Pulp, Coldplay, Katy Perry and Sheeran have all backed the MVT in its initiatives to help venues survive, by applying a modest fee to their admission fees, which benefits local stages.
Sam Fender also participated, generating more than £100,000 on his live tour to support numerous grassroots venues across the UK.
The donation helped venues that were dealing with potential shutdown due to difficulties stemming from flooding, blazes and personal losses, as well as regulatory hurdles, conflicts and noise complaints.
Additional spaces obtained monetary aid in upgrading amenities and gear that helped artists and concertgoers.
"The idea that revenue from performances in large arenas helps the independent spots, where it kicks off for artists like me, is just common sense," the star has said.
Fender is among several artists to contribute his award funds to charitable organizations.
In Pulp won the trophy in the year 1996 for their release their work, lead singer Cocker stated that the band would donate their prize money to the organization War Child.
In 2002, rapper and singer Ms Dynamite divided her prize between a few good causes, such as the NSPCC and a Sickle Cell charity.
"And I contributed a thousand pounds to the center, to their gymnastics program, because I did gymnastics when I was younger and they lacked better apparatus," Ms Dynamite told outlets.
Previously, they donated their funds to the community center that supported their group, as well as other independent music bodies.
Also 1994 winners M People contributed their winnings to a MS organization after a close contact was identified with the condition.
"Receiving the award was ample," stated singer Heather Small. "The money was the bonus but we didn't require the cherry, because we had the main prize. So our victory impacted the lives of others."
Last week, the Music Venues Trust announced it had saved two small stages in that region, by bringing them into public stewardship.
The first in Southampton and the second in the city were bought under the community ownership scheme, which is backed by the arts council and enthusiasts who purchase "ownership units" in the buildings.