The star has given the entirety of his twenty-five thousand pound award cash to the MVT, which functions to protect the United Kingdom's small concert spaces.
He was awarded the award on October 16 as his latest record his work was chosen as the outstanding release of the last 12 months.
The musician has opted to donate the funds to the Music Venues Trust, in recognition of the vital role small stages had in his early career.
"I personally wouldn't be doing what I am doing today if it hadn't been for all the gigs I did around the North East, and further afield, when I was starting out," stated Sam Fender. "These locations are renowned, but they are facing challenges."
Beginning in 2023, more than 150 of these locations have ceased operations – about one-sixth of the whole industry in the UK.
Over the past year, major artists such as Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to keep the scene afloat, by including a small levy to their ticket prices, which benefits smaller concert halls.
Sam Fender also took part, generating more than £100,000 on his 2024 arena tour to assist numerous grassroots venues across England, Scotland, and Wales.
The donation assisted venues that were confronting possible closure due to challenges caused by floods, fires and bereavements, as well as licensing issues, legal disputes and sound issues.
Some locations received funding support in modernizing amenities and technical equipment that directly benefitted musicians and audiences.
"The notion that money from shows in major spaces helps the smaller venues, where it all starts for performers like me, is just common sense," Fender has commented.
Fender is not the first artist to donate his award prize money to charitable organizations.
In the band won the award in the year 1996 for their release their work, lead singer the singer announced that the group would donate their cash to the charity the charity.
In 2002, artist she split her bounty across a few charities, like the children's charity and a charity for Sickle Cell.
"And I donated a thousand pounds to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was a child and they lacked updated gear," she told a publication.
Two years ago, they gave their prize money to the youth organization that supported their group, alongside other grassroots music organisations.
And 1994 winners they contributed their award to a multiple sclerosis charity after a friend was found to have the condition.
"The victory was ample," stated artist Heather Small. "The cash was the bonus but we didn't require the cherry, because we had the cake. So our winning touched the lives of others."
Last week, the MVT shared it had saved several small stages in the South East, by placing them under local control.
The first in the city and the other in Bristol were bought under the Own Our Venues initiative, which is backed by the arts council and music fans who buy "stakes" in the venues.