The artist has donated the full amount of his £25k award winnings to the Music Venues Trust, which operates to preserve the UK's independent concert spaces.
Fender was given the prize on mid-October as his latest record People Watching was declared the top album of the past year.
The musician has decided to donate the funds to the trust, in appreciation of the vital role small stages fulfilled in his early career.
"As an artist would not have achieved what I am doing today if it hadn't been for all the gigs I played around the North East, and elsewhere, when I was just getting going," said Fender. "These venues are iconic, but they are facing challenges."
Since the start of 2023, at least 150 of these venues have ceased operations – approximately one-sixth of the whole industry in the UK.
Over the past year, top acts such as the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its attempts to support the industry, by applying a minor surcharge to their ticket costs, which supports independent venues.
Sam Fender also participated, collecting over £100k on his live tour to support thirty-eight local spots across the UK.
The donation helped locations that were dealing with imminent closure due to challenges stemming from floods, fires and personal losses, as well as regulatory hurdles, court cases and noise complaints.
Additional spaces obtained funding support in improving infrastructure and sound and lighting systems that directly benefitted musicians and fans.
"The concept that money from performances in big venues helps the local stages, where it kicks off for performers like me, is just common sense," the star has commented.
The musician is far from the only musician to donate his honor funds to worthy causes.
Back when Pulp received the trophy in the mid-90s for their album their work, vocalist Cocker declared that the group would give their winnings to the organization the charity.
In 2002, musician she shared her prize among several charities, like the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a thousand pounds to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was a child and they lacked new equipment," Ms Dynamite shared with a publication.
Previously, the band donated their funds to the youth organization that developed their group, alongside other local music groups.
Additionally 1994 winners M People gave their winnings to a multiple sclerosis charity after a friend was found to have the illness.
"Receiving the award was quite enough," remarked vocalist Small. "The prize was the extra but we didn't require the cherry, because we had the main prize. So our success touched the lives of others."
In the past week, the trust shared it had saved several small stages in that region, by placing them under public stewardship.
One venue in Southampton and the second in that location were bought under the public acquisition scheme, which is funded by the arts council and music fans who purchase "stakes" in the properties.
