The artist has handed over the full amount of his £25,000 honor cash to the trust for venues, which operates to protect the UK's grassroots live music spots.
He was presented with the prize on mid-October as his third album his work was declared the top album of the previous year.
He has opted to hand the money over to the Music Venues Trust, in recognition of the essential function grassroots venues fulfilled in his initial steps.
"I personally would not have achieved my current career if it wasn't for all the shows I did around the area, and elsewhere, when I was starting out," remarked Fender. "These venues are legendary, but they are facing challenges."
Since the start of 2023, more than 150 of these locations have ceased operations – approximately 16% of the whole industry in the UK.
Recently, top acts such as Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its initiatives to keep the scene afloat, by applying a minor surcharge to their admission fees, which benefits independent venues.
Sam Fender also participated, generating over £100k on his recent tour to support 38 grassroots venues across Britain.
The money supported spaces that were dealing with imminent closure due to issues arising from flooding, blazes and family tragedies, as well as regulatory hurdles, conflicts and noise complaints.
Other venues received financial assistance in improving facilities and sound and lighting systems that directly benefitted performers and audiences.
"The concept that money from performances in big venues backs the independent spots, where it all starts for musicians like me, is just logical," Fender has stated.
Fender is far from the only musician to give his award prize money to charitable organizations.
In the band earned the trophy in 1996 for their record their work, vocalist the singer announced that the band would contribute their prize money to the non-profit War Child.
In 2002, artist Ms Dynamite divided her bounty among multiple good causes, like the NSPCC and a Sickle Cell charity.
"And I contributed a £1,000 to my local community centre, to their gymnastics class, because I trained in gymnastics when I was younger and they required better apparatus," the artist explained to the media.
Previously, the band gave their funds to the local youth club that developed their act, in addition to other grassroots music organisations.
Additionally winners that year they gave their prize to a MS organization after a close contact was diagnosed the condition.
"Receiving the award was ample," said artist the singer. "The cash was the cherry on top but we didn't need the cherry, because we had the cake. So our success touched another person's life."
Recently, the trust shared it had saved several grassroots venues in the South East, by transferring them to local control.
The Joiners in the city and The Croft in the city were acquired under the community ownership scheme, which is backed by the arts council and music fans who buy "stakes" in the venues.