The artist has given the full amount of his twenty-five thousand pound honor cash to the Music Venues Trust, which functions to save the Britain's independent concert spaces.
The star was awarded the prize on October 16 as his third album People Watching was declared the top album of the past year.
He has decided to give the cash to the MVT, in acknowledgment of the vital role local spots played in his early career.
"As an artist would not have achieved my current career if it hadn't been for all the gigs I performed around the North East, and elsewhere, when I was just getting going," remarked the artist. "These spaces are renowned, but they are facing challenges."
From early 2023 onward, at least 150 of these spaces have ceased operations – about one-sixth of the whole industry in the UK.
Over the past year, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to keep the scene afloat, by adding a minor surcharge to their admission fees, which supports local stages.
Sam Fender also joined in, raising over £100k on his live tour to help thirty-eight local spots across the UK.
The money helped locations that were confronting possible closure due to difficulties caused by water damage, fires and personal losses, as well as regulatory hurdles, court cases and neighbor objections.
Other venues received monetary aid in modernizing facilities and gear that directly benefitted musicians and concertgoers.
"The notion that funds from performances in major spaces backs the smaller venues, where it all starts for musicians like me, is just common sense," Sam Fender has commented.
The musician is among several artists to contribute his award prize money to worthy causes.
When they won the award in the mid-90s for their record Different Class, lead singer Jarvis Cocker announced that the band would contribute their prize money to the non-profit War Child.
In 2002, rapper and singer she shared her award across several good causes, such as the NSPCC and a Sickle Cell organization.
"I also gave a thousand pounds to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was growing up and they lacked updated gear," Ms Dynamite explained to the media.
Previously, the band donated their prize money to the youth organization that nurtured their act, alongside other grassroots music organisations.
Additionally the 1994 recipients M People contributed their prize to a charity for MS after a close contact was found to have the condition.
"Winning was ample," remarked vocalist Heather Small. "The prize was the bonus but we didn't require the cherry, because we had the honor. So our victory touched the lives of others."
Recently, the MVT shared it had saved several local spots in south-east England, by bringing them into local control.
The first in that area and The Croft in Bristol were acquired under the Own Our Venues initiative, which is backed by Arts Council England and enthusiasts who purchase "ownership units" in the venues.
