The artist has donated the full amount of his £25k honor prize money to the Music Venues Trust, which works to save the UK's grassroots live music spots.
The star was awarded the prize on 16 October as his latest record People Watching was chosen as the outstanding release of the previous year.
He has decided to hand the money over to the Music Venues Trust, in acknowledgment of the vital role local spots played in his beginning days.
"I personally would not have achieved my current career if it hadn't been for all the performances I did around the North East, and further afield, when I was starting out," said Fender. "These spaces are legendary, but they are facing challenges."
Since the start of 2023, more than 150 of these venues have ceased operations – about 16% of the whole industry in the UK.
In the last year, major artists like Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all supported the Music Venues Trust in its initiatives to keep the scene afloat, by including a small levy to their admission fees, which goes to help smaller concert halls.
Sam Fender also participated, generating over £100k on his live tour to support numerous local spots across England, Scotland, and Wales.
The donation supported locations that were dealing with imminent closure due to difficulties arising from flooding, fires and family tragedies, as well as licensing issues, court cases and noise complaints.
Additional spaces obtained monetary aid in improving infrastructure and gear that directly benefitted musicians and concertgoers.
"The concept that funds from shows in major spaces backs the independent spots, where it all starts for performers like me, is just common sense," Fender has stated.
The musician is among several artists to give his award winnings to good deeds.
In Pulp won the award in the year 1996 for their record Different Class, frontman Jarvis Cocker stated that the group would donate their prize money to the non-profit War Child.
That year, rapper and singer Ms Dynamite split her bounty across multiple organizations, like the NSPCC and a Sickle Cell charity.
"And I gave a grand to my local community centre, to their gymnastics program, because I trained in gymnastics when I was younger and they lacked updated gear," she told a publication.
Two years ago, they gave their prize money to the community center that supported their band, alongside other grassroots music organisations.
And 1994 winners they donated their award to a multiple sclerosis charity after a acquaintance was diagnosed the condition.
"The victory was sufficient," stated vocalist Heather Small. "The money was the extra but we didn't need the bonus, because we had the cake. So our success impacted somebody else's life."
Last week, the MVT shared it had rescued two local spots in that region, by transferring them to community ownership.
The first in that area and the second in that location were purchased under the community ownership scheme, which is backed by the arts council and enthusiasts who buy "ownership units" in the buildings.
