The artist has handed over the full amount of his twenty-five thousand pound honor cash to the MVT, which functions to protect the UK's independent music venues.
He was given the prize on mid-October as his latest record the album was chosen as the best record of the last 12 months.
The musician has opted to give the cash to the trust, in appreciation of the crucial part local spots played in his early career.
"I personally couldn't be pursuing what I am doing today if it weren't for all the gigs I performed around the region, and further afield, when I was just getting going," said Fender. "These spaces are iconic, but they are in difficulty."
From early 2023 onward, over 150 of these venues have shut down – about one-sixth of the whole industry in the UK.
In the last year, well-known musicians including Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the MVT in its initiatives to support the industry, by adding a modest fee to their admission fees, which goes to help independent venues.
Sam Fender also participated, raising over £100k on his live tour to help numerous local spots across England, Scotland, and Wales.
The money supported venues that were dealing with imminent closure due to issues stemming from flooding, fires and bereavements, as well as permit problems, conflicts and sound issues.
Some locations obtained funding support in modernizing amenities and gear that helped artists and audiences.
"The idea that revenue from performances in large arenas supports the smaller venues, where it all starts for performers like me, is just sensible," Fender has commented.
He is among several artists to donate his honor funds to charitable organizations.
Back when Pulp earned the prize in 1996 for their record Different Class, vocalist the singer announced that the act would contribute their cash to the organization War Child.
During 2002, musician Ms Dynamite shared her award among a few charities, such as the children's charity and a Sickle Cell charity.
"I also gave a £1,000 to the center, to their gymnastics class, because I trained in gymnastics when I was growing up and they required new equipment," the artist shared with the media.
Previously, the band donated their prize money to the community center that nurtured their band, in addition to other independent music bodies.
Additionally winners that year they gave their winnings to a MS organization after a friend was identified with the condition.
"The victory was sufficient," remarked singer Heather Small. "The prize was the bonus but we could do without the extra, because we had the honor. So our victory affected another person's life."
Recently, the trust revealed it had protected a couple of local spots in the South East, by transferring them to public stewardship.
One venue in Southampton and the other in the city were bought under the Own Our Venues program, which is backed by Arts Council England and enthusiasts who purchase "shares" in the properties.