The artist has given the full amount of his £25k award cash to the trust for venues, which operates to protect the Britain's grassroots music venues.
The star was awarded the prize on mid-October as his latest record his work was chosen as the best record of the past year.
He has decided to donate the funds to the Music Venues Trust, in appreciation of the essential function small stages played in his initial steps.
"I wouldn't be doing what I am doing today if it wasn't for all the performances I performed around the area, and elsewhere, when I was beginning," remarked the artist. "These spaces are legendary, but they are in difficulty."
Since the start of 2023, over 150 of these spaces have permanently closed – approximately one-sixth of the entire UK sector.
In the last year, well-known musicians like the band Pulp, Coldplay, Katy Perry and Sheeran have all supported the trust in its efforts to support the industry, by adding a small levy to their ticket costs, which goes to help local stages.
Sam Fender also joined in, raising more than £100,000 on his recent tour to assist thirty-eight local spots across Britain.
These funds helped locations that were facing possible closure due to challenges arising from flooding, fires and personal losses, as well as licensing issues, legal disputes and noise complaints.
Other venues received funding support in upgrading infrastructure and technical equipment that positively impacted musicians and concertgoers.
"The idea that revenue from shows in major spaces helps the smaller venues, where it kicks off for artists like me, is just logical," Fender has commented.
He is far from the only musician to give his honor prize money to charitable organizations.
When the band won the trophy in the year 1996 for their album their work, lead singer Jarvis Cocker announced that the group would give their prize money to the non-profit War Child.
That year, artist she divided her prize between a few charities, like the NSPCC and a Sickle Cell organization.
"And I gave a £1,000 to my local community centre, to their gymnastics class, because I trained in gymnastics when I was growing up and they needed updated gear," Ms Dynamite explained to a publication.
Previously, they gave their winnings to the youth organization that nurtured their act, in addition to other grassroots music organisations.
Also the 1994 recipients they contributed their winnings to a MS organization after a friend was found to have the disease.
"The victory was quite enough," said singer Heather Small. "The money was the bonus but we didn't need the bonus, because we had the honor. So our victory touched somebody else's life."
Last week, the Music Venues Trust shared it had protected several small stages in the South East, by placing them under public stewardship.
One venue in Southampton and the second in that location were bought under the public acquisition program, which is supported by Arts Council England and music fans who buy "stakes" in the venues.