The star has donated the full amount of his £25,000 honor cash to the MVT, which functions to preserve the United Kingdom's grassroots music venues.
Fender was awarded the award on 16 October as his third album his work was chosen as the outstanding release of the previous year.
He has opted to donate the funds to the MVT, in appreciation of the vital role small stages played in his beginning days.
"I would not have achieved this success if it weren't for all the shows I performed around the region, and beyond, when I was just getting going," remarked the artist. "These venues are legendary, but they are struggling."
From early 2023 onward, more than 150 of these spaces have ceased operations – approximately one-sixth of the entire UK sector.
Over the past year, top acts such as Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all backed the Music Venues Trust in its efforts to keep the scene afloat, by applying a minor surcharge to their ticket prices, which supports local stages.
Sam Fender also joined in, generating in excess of £100,000 on his 2024 arena tour to help 38 grassroots venues across the UK.
These funds assisted venues that were confronting imminent closure due to challenges arising from floods, fire incidents and personal losses, as well as permit problems, legal disputes and noise complaints.
Some locations obtained monetary aid in modernizing facilities and technical equipment that directly benefitted artists and audiences.
"The idea that revenue from shows in major spaces helps the smaller venues, where it all starts for musicians like me, is just common sense," the star has commented.
He is far from the only musician to contribute his award funds to worthy causes.
Back when the band received the prize in the mid-90s for their release Different Class, lead singer Cocker announced that the group would donate their prize money to the non-profit War Child.
In 2002, rapper and singer the artist shared her bounty between several charities, including the children's charity and a charity for Sickle Cell.
"Additionally, I donated a grand to Highgate Newtown, to their classes, because I practiced gymnastics when I was younger and they needed new equipment," the artist shared with a publication.
In recent years, Ezra Collective contributed their funds to the local youth club that supported their group, in addition to other grassroots music organisations.
And the 1994 recipients M People donated their prize to a multiple sclerosis charity after a friend was identified with the condition.
"The victory was quite enough," remarked singer Small. "The cash was the bonus but we could do without the bonus, because we had the honor. So our victory affected another person's life."
Last week, the trust revealed it had saved several small stages in south-east England, by bringing them into local control.
The Joiners in the city and the second in the city were acquired under the Own Our Venues program, which is supported by a national body and music fans who purchase "shares" in the properties.