The artist has given the entirety of his £25k honor cash to the trust for venues, which operates to preserve the UK's independent live music spots.
He was awarded the prize on 16 October as his new release his work was chosen as the best record of the previous year.
He has decided to donate the funds to the Music Venues Trust, in appreciation of the crucial part small stages had in his initial steps.
"I personally would not have achieved this success if it weren't for all the gigs I performed around the North East, and further afield, when I was just getting going," said Sam Fender. "These venues are iconic, but they are facing challenges."
From early 2023 onward, more than 150 of these venues have ceased operations – about 16% of the entire UK sector.
In the last year, top acts including the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the trust in its initiatives to help venues survive, by applying a small levy to their ticket costs, which goes to help local stages.
He also took part, generating over £100k on his recent tour to help numerous small stages across England, Scotland, and Wales.
The donation supported locations that were facing potential shutdown due to challenges arising from floods, fire incidents and bereavements, as well as licensing issues, legal disputes and neighbor objections.
Other venues obtained monetary aid in improving amenities and gear that positively impacted performers and fans.
"The concept that money from shows in major spaces helps the independent spots, where it all starts for artists like me, is just sensible," Sam Fender has commented.
The musician is far from the only musician to contribute his honor prize money to worthy causes.
When the band received the trophy in the year 1996 for their album the album, frontman Jarvis Cocker stated that the act would contribute their winnings to the charity War Child.
In 2002, artist the artist split her bounty across several good causes, like the NSPCC and a Sickle Cell charity.
"Additionally, I donated a thousand pounds to Highgate Newtown, to their classes, because I practiced gymnastics when I was growing up and they needed updated gear," the artist told a publication.
Two years ago, Ezra Collective donated their funds to the local youth club that supported their band, as well as other grassroots music organisations.
Also the 1994 recipients they gave their winnings to a MS organization after a friend was found to have the disease.
"Receiving the award was quite enough," remarked artist Heather Small. "The cash was the extra but we didn't need the bonus, because we had the main prize. So our winning affected another person's life."
In the past week, the trust revealed it had saved a couple of small stages in that region, by placing them under community ownership.
One venue in that area and the other in Bristol were purchased under the public acquisition scheme, which is backed by a national body and supporters who purchase "stakes" in the venues.