The artist has donated the full amount of his £25k honor cash to the MVT, which operates to preserve the Britain's independent music venues.
He was given the award on October 16 as his new release the album was chosen as the top album of the last 12 months.
He has opted to hand the money over to the trust, in appreciation of the vital role grassroots venues fulfilled in his initial steps.
"I would not have achieved what I am doing today if it hadn't been for all the gigs I played around the area, and beyond, when I was beginning," stated Fender. "These spaces are iconic, but they are facing challenges."
From early 2023 onward, over 150 of these spaces have permanently closed – roughly 16 percent of the entire UK sector.
Recently, top acts such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its efforts to help venues survive, by including a small levy to their ticket prices, which goes to help independent venues.
Sam Fender also took part, generating over £100k on his recent tour to support thirty-eight local spots across England, Scotland, and Wales.
These funds helped locations that were dealing with imminent closure due to challenges arising from floods, fire incidents and bereavements, as well as regulatory hurdles, court cases and sound issues.
Additional spaces were granted monetary aid in improving infrastructure and gear that helped musicians and audiences.
"The idea that funds from performances in major spaces helps the independent spots, where it kicks off for musicians like me, is just sensible," Fender has commented.
He is not the first artist to contribute his award winnings to worthy causes.
When the band earned the award in 1996 for their release the album, vocalist Cocker stated that the band would donate their prize money to the non-profit War Child.
That year, musician the artist divided her prize across a few organizations, including the NSPCC and a Sickle Cell charity.
"And I gave a grand to Highgate Newtown, to their classes, because I practiced gymnastics when I was younger and they lacked updated gear," Ms Dynamite told a publication.
In recent years, they contributed their prize money to the community center that developed their band, alongside other local music groups.
Also winners that year M People contributed their award to a charity for MS after a close contact was identified with the condition.
"Receiving the award was sufficient," said vocalist Small. "The money was the bonus but we could do without the cherry, because we had the honor. So our victory affected the lives of others."
In the past week, the Music Venues Trust shared it had protected a couple of small stages in south-east England, by placing them under local control.
The Joiners in the city and the second in Bristol were purchased under the community ownership program, which is supported by the arts council and supporters who buy "stakes" in the properties.