The artist has handed over the full amount of his £25k honor cash to the MVT, which works to preserve the UK's small music venues.
The star was awarded the prize on mid-October as his latest record the album was chosen as the top album of the previous year.
Fender has decided to donate the funds to the MVT, in recognition of the essential function grassroots venues had in his beginning days.
"I wouldn't be doing this success if it weren't for all the shows I performed around the area, and elsewhere, when I was just getting going," stated Sam Fender. "These venues are iconic, but they are in difficulty."
Beginning in 2023, over 150 of these locations have permanently closed – roughly one-sixth of the entire UK sector.
Over the past year, well-known musicians including the band Pulp, Coldplay, the singer Katy Perry and Sheeran have all supported the trust in its efforts to keep the scene afloat, by including a minor surcharge to their admission fees, which goes to help independent venues.
Sam Fender also participated, generating more than £100,000 on his live tour to support numerous local spots across Britain.
These funds helped spaces that were confronting potential shutdown due to difficulties caused by water damage, fires and personal losses, as well as permit problems, conflicts and noise complaints.
Other venues were granted financial assistance in improving infrastructure and technical equipment that directly benefitted performers and concertgoers.
"The notion that money from performances in large arenas helps the local stages, where it begins for musicians like me, is just sensible," Fender has commented.
He is far from the only musician to give his award funds to worthy causes.
When the band received the award in the mid-90s for their record their work, frontman the singer declared that the act would donate their winnings to the charity the charity.
That year, rapper and singer the artist split her award between multiple organizations, such as the NSPCC and a Sickle Cell charity.
"And I donated a thousand pounds to my local community centre, to their classes, because I practiced gymnastics when I was a child and they lacked new equipment," Ms Dynamite explained to the media.
Two years ago, the band contributed their winnings to the local youth club that supported their group, as well as other grassroots music organisations.
And the 1994 recipients the group donated their prize to a multiple sclerosis charity after a close contact was diagnosed the illness.
"Receiving the award was quite enough," said artist Heather Small. "The prize was the extra but we didn't require the bonus, because we had the cake. So our victory touched the lives of others."
In the past week, the trust announced it had saved several grassroots venues in south-east England, by placing them under local control.
One venue in the city and the other in Bristol were bought under the community ownership program, which is backed by a national body and enthusiasts who acquire "stakes" in the buildings.