The artist has given the complete sum of his twenty-five thousand pound honor cash to the Music Venues Trust, which works to preserve the UK's small music venues.
He was presented with the award on October 16 as his new release his work was declared the outstanding release of the past year.
He has decided to give the cash to the MVT, in acknowledgment of the crucial part grassroots venues played in his initial steps.
"I wouldn't be doing what I am doing today if it wasn't for all the shows I did around the North East, and further afield, when I was just getting going," said Sam Fender. "These locations are iconic, but they are in difficulty."
From early 2023 onward, over 150 of these locations have shut down – approximately 16% of the whole industry in the UK.
Over the past year, well-known musicians including Pulp, Coldplay, Katy Perry and 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.
Fender also joined in, raising more than £100,000 on his 2024 arena tour to help thirty-eight grassroots venues across the UK.
These funds supported spaces that were dealing with possible closure due to issues arising from floods, fire incidents and family tragedies, as well as licensing issues, court cases and neighbor objections.
Additional spaces obtained funding support in upgrading amenities and gear that positively impacted musicians and concertgoers.
"The concept that money from concerts in major spaces helps the independent spots, where it begins for musicians like me, is just common sense," Fender has said.
The musician is far from the only musician to contribute his honor winnings to charitable organizations.
In the band received the prize in the year 1996 for their release Different Class, frontman Jarvis Cocker stated that the act would donate their cash to the organization War Child.
In 2002, rapper and singer Ms Dynamite divided her prize across multiple organizations, such as the NSPCC and a Sickle Cell organization.
"And I gave a £1,000 to my local community centre, to their classes, because I trained in gymnastics when I was younger and they needed updated gear," Ms Dynamite shared with the media.
In recent years, Ezra Collective gave their funds to the youth organization that supported their band, as well as other grassroots music organisations.
Also 1994 winners the group gave their winnings to a charity for MS after a close contact was identified with the disease.
"Winning was ample," said singer Small. "The money was the bonus but we didn't need the extra, because we had the honor. So our winning impacted another person's life."
In the past week, the MVT shared it had rescued several grassroots venues in the South East, by placing them under public stewardship.
The first in that area and the other in that location were acquired under the public acquisition initiative, which is backed by the arts council and supporters who acquire "ownership units" in the venues.