The artist has handed over the entirety of his £25k award cash to the Music Venues Trust, which functions to save the UK's small concert spaces.
He was given the prize on 16 October as his third album his work was named the best record of the previous year.
The musician has decided to give the cash to the trust, in recognition of the vital role small stages played in his initial steps.
"I personally couldn't be pursuing this success if it weren't for all the performances I performed around the area, and beyond, when I was beginning," said Fender. "These locations are legendary, but they are in difficulty."
Beginning in 2023, more than 150 of these locations have shut down – about 16% of the whole industry in the UK.
In the last year, top acts including Pulp, Coldplay, Katy Perry and Sheeran have all backed the trust in its attempts to help venues survive, by adding a small levy to their ticket costs, which benefits local stages.
Sam Fender also took part, raising more than £100,000 on his recent tour to help numerous grassroots venues across England, Scotland, and Wales.
The donation assisted locations that were facing possible closure due to difficulties arising from water damage, fires and bereavements, as well as regulatory hurdles, legal disputes and neighbor objections.
Some locations were granted financial assistance in upgrading facilities and gear that helped artists and fans.
"The idea that funds from performances in large arenas backs the independent spots, where it kicks off for performers like me, is just sensible," the star has commented.
Fender is among several artists to give his award winnings to charitable organizations.
When Pulp won the trophy in 1996 for their album the album, lead singer Jarvis Cocker stated that the act would contribute their prize money to the charity War Child.
In 2002, artist she shared her bounty between multiple charities, including the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a thousand pounds to my local community centre, to their classes, because I trained in gymnastics when I was a child and they required updated gear," Ms Dynamite explained to outlets.
In recent years, Ezra Collective donated their funds to the youth organization that developed their act, in addition to other grassroots music organisations.
Additionally winners that year the group gave their award to a MS organization after a friend was found to have the disease.
"The victory was ample," said artist Heather Small. "The money was the bonus but we could do without the extra, because we had the main prize. So our success touched the lives of others."
In the past week, the Music Venues Trust shared it had saved two small stages in the South East, by bringing them into local control.
One venue in that area and the other in the city were acquired under the Own Our Venues scheme, which is supported by Arts Council England and music fans who buy "ownership units" in the buildings.
