The star has given the entirety of his £25k honor cash to the Music Venues Trust, which works to protect the UK's small music venues.
The star was awarded the award on mid-October as his new release People Watching was named the best record of the past year.
The musician has opted to give the cash to the Music Venues Trust, in appreciation of the vital role local spots played in his initial steps.
"As an artist would not have achieved this success if it wasn't for all the shows I performed around the region, and further afield, when I was just getting going," said the artist. "These venues are renowned, but they are in difficulty."
Since the start of 2023, over 150 of these venues have permanently closed – roughly 16% of the whole industry in the UK.
Over the past year, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its attempts to help venues survive, by applying a small levy to their ticket prices, which supports smaller concert halls.
Sam Fender also took part, generating more than £100,000 on his live tour to support 38 local spots across Britain.
The donation helped venues that were facing imminent closure due to challenges stemming from flooding, fires and bereavements, as well as regulatory hurdles, legal disputes and sound issues.
Other venues were granted monetary aid in modernizing facilities and sound and lighting systems that directly benefitted musicians and audiences.
"The notion that money from shows in big venues backs the independent spots, where it begins for artists like me, is just logical," Fender has said.
The musician is far from the only musician to give his award funds to good deeds.
In they won the trophy in the year 1996 for their album Different Class, vocalist Jarvis Cocker stated that the band would give their prize money to the charity War Child.
In 2002, artist she split her prize across a few good causes, like the children's charity and a charity for Sickle Cell.
"And I contributed a thousand pounds to the center, to their gymnastics class, because I practiced gymnastics when I was growing up and they needed updated gear," she told outlets.
In recent years, they donated their prize money to the community center that supported their band, as well as other grassroots music organisations.
Additionally winners that year M People contributed their winnings to a charity for MS after a acquaintance was identified with the condition.
"The victory was quite enough," remarked singer Heather Small. "The cash was the extra but we could do without the cherry, because we had the main prize. So our success affected the lives of others."
In the past week, the trust revealed it had protected several small stages in that region, by transferring them to community ownership.
The Joiners in Southampton and The Croft in Bristol were purchased under the Own Our Venues initiative, which is funded by the arts council and enthusiasts who buy "shares" in the buildings.
