The artist has handed over the full amount of his twenty-five thousand pound award cash to the MVT, which works to preserve the UK's small concert spaces.
Fender was awarded the prize on 16 October as his third album his work was named the outstanding release of the previous year.
He has decided to donate the funds to the MVT, in recognition of the crucial part grassroots venues had in his early career.
"I personally couldn't be pursuing my current career if it hadn't been for all the performances I did around the region, and further afield, when I was starting out," said the artist. "These venues are renowned, but they are facing challenges."
Beginning in 2023, at least 150 of these locations have ceased operations – roughly 16% of the total UK scene.
Recently, major artists such as Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its initiatives to support the industry, by adding a small levy to their admission fees, which benefits local stages.
Fender also joined in, raising in excess of £100,000 on his recent tour to help numerous local spots across England, Scotland, and Wales.
These funds assisted venues that were dealing with imminent closure due to challenges caused by flooding, fire incidents and personal losses, as well as regulatory hurdles, court cases and sound issues.
Some locations were granted funding support in upgrading infrastructure and gear that directly benefitted artists and fans.
"The idea that money from performances in large arenas helps the smaller venues, where it kicks off for musicians like me, is just sensible," Sam Fender has said.
He is not the first artist to donate his award prize money to charitable organizations.
When the band won the trophy in the mid-90s for their record Different Class, lead singer Cocker declared that the act would contribute their winnings to the charity the charity.
That year, artist she shared her award between several organizations, like the NSPCC and a Sickle Cell charity.
"I also gave a grand to the center, to their gymnastics class, because I practiced gymnastics when I was growing up and they needed new equipment," Ms Dynamite explained to the media.
Previously, the band donated their funds to the community center that nurtured their band, as well as other independent music bodies.
Additionally winners that year the group donated their prize to a multiple sclerosis charity after a friend was identified with the illness.
"The victory was ample," remarked artist Heather Small. "The cash was the cherry on top but we could do without the extra, because we had the main prize. So our victory touched the lives of others."
In the past week, the Music Venues Trust announced it had rescued several local spots in south-east England, by placing them under local control.
The Joiners in the city and the other in that location were acquired under the Own Our Venues scheme, which is supported by a national body and supporters who buy "ownership units" in the properties.
