The star has given the complete sum of his £25k award cash to the Music Venues Trust, which operates to protect the UK's grassroots concert spaces.
Fender was given the award on mid-October as his new release the album was named the best record of the past year.
Fender has chosen to donate the funds to the MVT, in appreciation of the crucial part grassroots venues played in his early career.
"As an artist wouldn't be doing my current career if it wasn't for all the shows I played around the region, and beyond, when I was beginning," stated the artist. "These locations are iconic, but they are facing challenges."
Since the start of 2023, at least 150 of these venues have ceased operations – approximately 16% of the total UK scene.
Over the past year, well-known musicians like Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its attempts to keep the scene afloat, by applying a small levy to their ticket prices, which goes to help local stages.
Sam Fender also participated, generating in excess of £100,000 on his 2024 arena tour to help numerous grassroots venues across the UK.
These funds supported spaces that were dealing with possible closure due to challenges caused by water damage, blazes and bereavements, as well as licensing issues, court cases and noise complaints.
Some locations received financial assistance in improving amenities and technical equipment that helped artists and audiences.
"The concept that revenue from shows in major spaces supports the smaller venues, where it kicks off for musicians like me, is just sensible," Fender has stated.
He is not the first artist to give his award funds to worthy causes.
When Pulp earned the trophy in 1996 for their album their work, lead singer Jarvis Cocker announced that the band would contribute their cash to the organization the charity.
In 2002, artist Ms Dynamite shared her bounty among multiple good causes, including the NSPCC and a Sickle Cell charity.
"And I contributed a thousand pounds to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was growing up and they needed better apparatus," Ms Dynamite explained to a publication.
Two years ago, the band gave their funds to the community center that nurtured their act, as well as other grassroots music organisations.
Also the 1994 recipients M People donated their winnings to a charity for MS after a friend was found to have the condition.
"Winning was quite enough," stated artist Heather Small. "The money was the bonus but we didn't require the bonus, because we had the cake. So our winning touched another person's life."
In the past week, the trust announced it had saved a couple of small stages in the South East, by placing them under community ownership.
The first in that area and The Croft in Bristol were purchased under the community ownership scheme, which is backed by a national body and enthusiasts who buy "stakes" in the properties.