The artist has donated the complete sum of his £25,000 award cash to the Music Venues Trust, which functions to preserve the Britain's grassroots music venues.
Fender was presented with the prize on mid-October as his third album his work was named the top album of the previous year.
Fender has opted to hand the money over to the Music Venues Trust, in appreciation of the vital role grassroots venues played in his early career.
"I couldn't be pursuing this success if it weren't for all the performances I did around the region, and beyond, when I was starting out," remarked Sam Fender. "These venues are renowned, but they are struggling."
Since the start of 2023, more than 150 of these venues have permanently closed – about 16% of the entire UK sector.
Recently, top acts like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its attempts to help venues survive, by applying a modest fee to their ticket costs, which benefits local stages.
Fender also took part, generating more than £100,000 on his live tour to help 38 small stages across Britain.
These funds supported venues that were dealing with imminent closure due to issues caused by water damage, blazes and personal losses, as well as licensing issues, conflicts and sound issues.
Other venues received funding support in modernizing amenities and gear that positively impacted musicians and fans.
"The idea that money from concerts in big venues helps the local stages, where it begins for artists like me, is just common sense," Sam Fender has said.
Fender is not the first artist to give his honor prize money to good deeds.
In the band earned the trophy in 1996 for their release their work, lead singer Jarvis Cocker announced that the act would donate their cash to the charity War Child.
That year, artist Ms Dynamite divided her award between a few good causes, including the NSPCC and a Sickle Cell organization.
"And I gave a £1,000 to my local community centre, to their classes, because I trained in gymnastics when I was growing up and they lacked better apparatus," the artist shared with the media.
In recent years, the band gave their winnings to the community center that developed their group, as well as other independent music bodies.
Additionally the 1994 recipients M People gave their prize to a charity for MS after a acquaintance was identified with the illness.
"The victory was ample," said artist the singer. "The prize was the bonus but we didn't need the bonus, because we had the main prize. So our winning impacted another person's life."
Recently, the trust announced it had protected two small stages in that region, by bringing them into local control.
The first in that area and The Croft in Bristol were acquired under the community ownership scheme, which is backed by a national body and enthusiasts who acquire "stakes" in the venues.