The star has given the entirety of his £25k honor prize money to the Music Venues Trust, which operates to protect the UK's independent music venues.
Fender was given the prize on 16 October as his latest record the album was declared the top album of the previous year.
The musician has opted to donate the funds to the trust, in acknowledgment of the essential function small stages had in his early career.
"I personally couldn't be pursuing what I am doing today if it hadn't been for all the performances I did around the North East, and further afield, when I was starting out," said Sam Fender. "These venues are renowned, but they are facing challenges."
Since the start of 2023, over 150 of these spaces have permanently closed – roughly 16% of the entire UK sector.
In the last year, well-known musicians including the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the MVT in its attempts to help venues survive, by adding a small levy to their admission fees, which supports smaller concert halls.
He also participated, collecting more than £100,000 on his 2024 arena tour to support 38 small stages across England, Scotland, and Wales.
The money helped locations that were confronting possible closure due to issues stemming from flooding, fires and personal losses, as well as permit problems, conflicts and neighbor objections.
Additional spaces were granted monetary aid in modernizing infrastructure and gear that positively impacted musicians and fans.
"The idea that funds from performances in large arenas supports the independent spots, where it all starts for artists like me, is just sensible," Fender has commented.
Fender is far from the only musician to donate his honor prize money to good deeds.
When the band received the award in the year 1996 for their album Different Class, frontman Cocker announced that the act would donate their winnings to the organization War Child.
In 2002, rapper and singer she divided her award between several organizations, like the children's charity and a Sickle Cell charity.
"And I contributed a thousand pounds to Highgate Newtown, to their classes, because I trained in gymnastics when I was a child and they required new equipment," the artist told a publication.
In recent years, they contributed their winnings to the community center that nurtured their group, in addition to other independent music bodies.
Additionally 1994 winners they gave their award to a multiple sclerosis charity after a close contact was found to have the disease.
"The victory was sufficient," said vocalist Heather Small. "The cash was the extra but we didn't need the bonus, because we had the cake. So our winning affected somebody else's life."
In the past week, the Music Venues Trust announced it had rescued several small stages in that region, by transferring them to community ownership.
One venue in that area and the other in Bristol were acquired under the community ownership scheme, which is backed by Arts Council England and enthusiasts who purchase "ownership units" in the venues.