The artist has given the complete sum of his £25k honor cash to the MVT, which functions to preserve the UK's independent live music spots.
Fender was presented with the prize on October 16 as his latest record People Watching was chosen as the best record of the last 12 months.
The musician has decided to hand the money over to the Music Venues Trust, in appreciation of the crucial part grassroots venues played in his initial steps.
"I personally would not have achieved my current career if it weren't for all the gigs I did around the region, and elsewhere, when I was starting out," said Sam Fender. "These spaces are renowned, but they are struggling."
From early 2023 onward, over 150 of these spaces have permanently closed – about one-sixth of the whole industry in the UK.
Over the past year, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its attempts to keep the scene afloat, by applying a modest fee to their ticket prices, which supports independent venues.
He also joined in, generating more than £100,000 on his live tour to support 38 local spots across the UK.
These funds assisted locations that were dealing with potential shutdown due to issues stemming from water damage, blazes and personal losses, as well as licensing issues, conflicts and noise complaints.
Other venues received monetary aid in improving infrastructure and sound and lighting systems that directly benefitted performers and fans.
"The notion that revenue from concerts in major spaces helps the local stages, where it all starts for musicians like me, is just common sense," Sam Fender has said.
The musician is far from the only musician to donate his honor winnings to charitable organizations.
Back when they won the trophy in the year 1996 for their album Different Class, frontman the singer stated that the act would contribute their cash to the organization War Child.
During 2002, rapper and singer Ms Dynamite shared her prize across a few charities, like the children's charity and a Sickle Cell charity.
"And I contributed a £1,000 to my local community centre, to their classes, because I trained in gymnastics when I was younger and they needed better apparatus," the artist told outlets.
Two years ago, Ezra Collective gave their prize money to the community center that supported their act, as well as other local music groups.
Also winners that year the group donated their prize to a MS organization after a friend was identified with the illness.
"Winning was ample," remarked artist Small. "The cash was the bonus but we could do without the extra, because we had the cake. So our success impacted another person's life."
In the past week, the Music Venues Trust revealed it had saved several grassroots venues in south-east England, by transferring them to public stewardship.
One venue in Southampton and the other in the city were purchased under the community ownership program, which is funded by the arts council and supporters who acquire "stakes" in the venues.