The star has given the full amount of his £25k award cash to the Music Venues Trust, which functions to preserve the United Kingdom's independent concert spaces.
Fender was presented with the prize on October 16 as his new release People Watching was chosen as the outstanding release of the last 12 months.
The musician has chosen to donate the funds to the MVT, in appreciation of the vital role grassroots venues played in his early career.
"I couldn't be pursuing what I am doing today if it hadn't been for all the shows I played around the area, and beyond, when I was beginning," remarked the artist. "These spaces are legendary, but they are facing challenges."
From early 2023 onward, over 150 of these venues have shut down – roughly one-sixth of the whole industry in the UK.
In the last year, top acts like Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to keep the scene afloat, by including a minor surcharge to their ticket prices, which benefits independent venues.
Sam Fender also took part, raising in excess of £100,000 on his live tour to help 38 grassroots venues across England, Scotland, and Wales.
These funds helped locations that were confronting imminent closure due to challenges stemming from flooding, fire incidents and bereavements, as well as licensing issues, legal disputes and noise complaints.
Additional spaces were granted monetary aid in modernizing infrastructure and gear that directly benefitted performers and concertgoers.
"The notion that funds from concerts in large arenas helps the local stages, where it begins for musicians like me, is just logical," Fender has commented.
He is far from the only musician to donate his honor winnings to worthy causes.
Back when they won the award in 1996 for their album the album, frontman Cocker announced that the group would contribute their cash to the non-profit War Child.
That year, rapper and singer the artist split her bounty between several good causes, including the NSPCC and a charity for Sickle Cell.
"I also gave a thousand pounds to the center, to their gymnastics program, because I did gymnastics when I was growing up and they lacked updated gear," she told a publication.
Two years ago, Ezra Collective donated their funds to the community center that nurtured their band, as well as other local music groups.
Also 1994 winners the group contributed their award to a MS organization after a close contact was found to have the condition.
"Winning was quite enough," stated artist Heather Small. "The prize was the bonus but we didn't need the bonus, because we had the cake. So our winning touched another person's life."
Recently, the MVT revealed it had protected two local spots in that region, by bringing them into local control.
One venue in Southampton and the other in the city were purchased under the community ownership program, which is funded by Arts Council England and enthusiasts who acquire "shares" in the venues.
