The star has donated the full amount of his £25k award winnings to the Music Venues Trust, which operates to protect the UK's small concert spaces.
He was presented with the prize on mid-October as his new release the album was declared the best record of the past year.
He has decided to hand the money over to the trust, in recognition of the vital role grassroots venues played in his beginning days.
"I personally couldn't be pursuing this success if it weren't for all the gigs I played around the area, and further afield, when I was just getting going," stated Sam Fender. "These spaces are renowned, but they are facing challenges."
From early 2023 onward, over 150 of these spaces have shut down – about 16% of the whole industry in the UK.
Over the past year, top acts including Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its initiatives to support the industry, by adding a small levy to their ticket costs, which goes to help independent venues.
Fender also took part, raising over £100k on his live tour to assist numerous grassroots venues across the UK.
These funds assisted venues that were facing possible closure due to challenges stemming from floods, fires and personal losses, as well as licensing issues, court cases and sound issues.
Additional spaces were granted monetary aid in upgrading facilities and sound and lighting systems that helped artists and concertgoers.
"The notion that funds from shows in major spaces backs the local stages, where it all starts for performers like me, is just sensible," Sam Fender has stated.
The musician is not the first artist to donate his honor prize money to worthy causes.
Back when the band earned the prize in the mid-90s for their release the album, lead singer the singer stated that the act would contribute their prize money to the non-profit War Child.
That year, musician she divided her prize across multiple good causes, such as the NSPCC and a Sickle Cell charity.
"Additionally, I donated a grand to my local community centre, to their gymnastics program, because I practiced gymnastics when I was growing up and they required new equipment," she told the media.
Previously, the band contributed their prize money to the community center that supported their group, alongside other grassroots music organisations.
And winners that year M People contributed their prize to a multiple sclerosis charity after a friend was found to have the disease.
"Winning was quite enough," remarked singer the singer. "The prize was the bonus but we could do without the cherry, because we had the honor. So our winning impacted the lives of others."
Last week, the Music Venues Trust announced it had protected several local spots in the South East, by transferring them to community ownership.
The first in Southampton and the other in Bristol were purchased under the Own Our Venues initiative, which is backed by Arts Council England and music fans who acquire "shares" in the properties.