The star has given the entirety of his twenty-five thousand pound award cash to the Music Venues Trust, which works to preserve the United Kingdom's grassroots concert spaces.
The star was presented with the award on mid-October as his latest record the album was chosen as the outstanding release of the previous year.
He has decided to hand the money over to the trust, in recognition of the vital role small stages played in his early career.
"I would not have achieved my current career if it hadn't been for all the gigs I played around the North East, and elsewhere, when I was starting out," said Sam Fender. "These locations are iconic, but they are facing challenges."
Since the start of 2023, more than 150 of these spaces have permanently closed – about 16 percent of the total UK scene.
In the last year, major artists such as the band Pulp, Coldplay, Katy Perry and Sheeran have all supported the Music Venues Trust in its initiatives to keep the scene afloat, by including a small levy to their admission fees, which goes to help independent venues.
Fender also joined in, raising more than £100,000 on his 2024 arena tour to support numerous local spots across Britain.
These funds helped venues that were confronting potential shutdown due to challenges stemming from floods, fires and family tragedies, as well as licensing issues, court cases and sound issues.
Additional spaces obtained monetary aid in upgrading infrastructure and gear that helped performers and concertgoers.
"The notion that money from concerts in major spaces supports the local stages, where it begins for musicians like me, is just logical," Fender has said.
He is among several artists to contribute his award winnings to worthy causes.
Back when they won the prize in the mid-90s for their release their work, vocalist Jarvis Cocker announced that the group would contribute their cash to the charity War Child.
In 2002, artist the artist divided her prize across several good causes, such as the NSPCC and a Sickle Cell organization.
"Additionally, I gave a £1,000 to the center, to their gymnastics program, because I trained in gymnastics when I was younger and they needed better apparatus," Ms Dynamite explained to outlets.
In recent years, they donated their funds to the youth organization that nurtured their act, in addition to other independent music bodies.
Also winners that year they contributed their prize to a charity for MS after a friend was found to have the condition.
"Winning was quite enough," stated singer Small. "The cash was the extra but we could do without the extra, because we had the cake. So our victory impacted somebody else's life."
In the past week, the MVT shared it had rescued a couple of small stages in the South East, by transferring them to local control.
The first in the city and the other in the city were purchased under the public acquisition initiative, which is backed by the arts council and enthusiasts who buy "ownership units" in the venues.