The artist has given the full amount of his £25k honor cash to the MVT, which operates to save the UK's independent concert spaces.
The star was given the prize on mid-October as his latest record People Watching was declared the outstanding release of the last 12 months.
Fender has opted to hand the money over to the Music Venues Trust, in appreciation of the essential function grassroots venues had in his beginning days.
"I couldn't be pursuing what I am doing today if it wasn't for all the gigs I played around the area, and elsewhere, when I was starting out," stated Sam Fender. "These venues are legendary, but they are struggling."
Since the start of 2023, at least 150 of these venues have ceased operations – about 16 percent of the whole industry in the UK.
Recently, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its initiatives to keep the scene afloat, by including a small levy to their admission fees, which goes to help local stages.
Sam Fender also took part, raising more than £100,000 on his live tour to support numerous small stages across Britain.
The donation helped locations that were facing possible closure due to issues stemming from floods, fires and bereavements, as well as licensing issues, conflicts and sound issues.
Additional spaces received financial assistance in modernizing facilities and sound and lighting systems that helped performers and audiences.
"The idea that money from concerts in large arenas backs the smaller venues, where it begins for musicians like me, is just logical," the star has stated.
The musician is among several artists to give his award winnings to charitable organizations.
In they earned the prize in 1996 for their record the album, frontman the singer declared that the act would donate their prize money to the non-profit War Child.
That year, musician the artist shared her prize among multiple good causes, such as the NSPCC and a Sickle Cell charity.
"And I donated a grand to the center, to their classes, because I did gymnastics when I was growing up and they required new equipment," Ms Dynamite explained to outlets.
Two years ago, the band gave their funds to the local youth club that nurtured their group, alongside other independent music bodies.
Also the 1994 recipients they gave their winnings to a charity for MS after a close contact was found to have the condition.
"Receiving the award was quite enough," stated vocalist Heather Small. "The prize was the bonus but we could do without the bonus, because we had the honor. So our winning touched another person's life."
Last week, the MVT shared it had rescued a couple of grassroots venues in that region, by bringing them into public stewardship.
The first in that area and the other in Bristol were bought under the community ownership scheme, which is backed by a national body and enthusiasts who purchase "shares" in the venues.
