The star has donated the entirety of his £25k award winnings to the Music Venues Trust, which operates to protect the UK's small music venues.
He was presented with the prize on 16 October as his latest record People Watching was named the outstanding release of the last 12 months.
The musician has opted to give the cash to the trust, in appreciation of the vital role grassroots venues had in his early career.
"As an artist would not have achieved my current career if it weren't for all the performances I played around the region, and further afield, when I was just getting going," stated Sam Fender. "These venues are legendary, but they are in difficulty."
Since the start of 2023, more than 150 of these spaces have shut down – about one-sixth of the total UK scene.
Over the past year, well-known musicians including the band Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all backed the Music Venues Trust in its efforts to support the industry, by applying a minor surcharge to their admission fees, which benefits smaller concert halls.
Fender also took part, generating more than £100,000 on his live tour to help 38 small stages across the UK.
The money supported locations that were dealing with possible closure due to issues stemming from floods, fire incidents and family tragedies, as well as regulatory hurdles, conflicts and sound issues.
Some locations received funding support in upgrading infrastructure and sound and lighting systems that helped performers and fans.
"The notion that funds from performances in large arenas backs the smaller venues, where it begins for performers like me, is just common sense," Sam Fender has stated.
Fender is far from the only musician to contribute his honor prize money to worthy causes.
When they received the award in 1996 for their record Different Class, vocalist Jarvis Cocker announced that the band would give their cash to the organization War Child.
During 2002, rapper and singer Ms Dynamite split her award between several good causes, like the NSPCC and a Sickle Cell charity.
"Additionally, I donated a grand to Highgate Newtown, to their classes, because I practiced gymnastics when I was a child and they required updated gear," Ms Dynamite told a publication.
Two years ago, Ezra Collective gave their funds to the local youth club that developed their band, in addition to other independent music bodies.
Also the 1994 recipients the group gave their prize to a multiple sclerosis charity after a close contact was diagnosed the condition.
"Winning was quite enough," stated vocalist Heather Small. "The cash was the cherry on top but we didn't need the cherry, because we had the cake. So our victory affected another person's life."
In the past week, the trust announced it had protected two small stages in the South East, by placing them under public stewardship.
The first in Southampton and The Croft in Bristol were bought under the public acquisition scheme, which is funded by a national body and supporters who buy "ownership units" in the properties.
