The artist has donated the entirety of his £25,000 honor cash to the Music Venues Trust, which functions to save the United Kingdom's independent concert spaces.
He was awarded the award on 16 October as his third album the album was chosen as the outstanding release of the previous year.
The musician has opted to donate the funds to the Music Venues Trust, in recognition of the crucial part grassroots venues played in his beginning days.
"I couldn't be pursuing what I am doing today if it weren't for all the gigs I did around the area, and beyond, when I was just getting going," stated Fender. "These locations are renowned, but they are facing challenges."
Since the start of 2023, more than 150 of these venues have permanently closed – roughly 16% of the whole industry in the UK.
Recently, well-known musicians including the band Pulp, Coldplay, the singer Katy Perry and Sheeran have all supported the MVT in its initiatives to keep the scene afloat, by adding a minor surcharge to their admission fees, which supports local stages.
Sam Fender also participated, collecting more than £100,000 on his recent tour to assist 38 local spots across the UK.
The donation supported locations that were confronting imminent closure due to issues caused by floods, blazes and personal losses, as well as regulatory hurdles, legal disputes and noise complaints.
Some locations obtained funding support in improving infrastructure and gear that helped musicians and fans.
"The notion that money from concerts in large arenas helps the independent spots, where it all starts for artists like me, is just logical," the star has stated.
The musician is far from the only musician to donate his award funds to worthy causes.
When Pulp received the prize in 1996 for their album their work, frontman Cocker stated that the act would give their winnings to the organization War Child.
That year, musician Ms Dynamite shared her prize between a few charities, including the NSPCC and a Sickle Cell charity.
"Additionally, I contributed a grand to the center, to their gymnastics program, because I practiced gymnastics when I was a child and they required new equipment," Ms Dynamite shared with outlets.
Previously, the band donated their prize money to the local youth club that supported their band, alongside other local music groups.
Also the 1994 recipients M People contributed their prize to a charity for MS after a close contact was found to have the disease.
"Winning was ample," said singer the singer. "The prize was the cherry on top but we didn't need the extra, because we had the honor. So our winning touched the lives of others."
Recently, the MVT revealed it had protected several local spots in south-east England, by placing them under public stewardship.
The Joiners in Southampton and the second in that location were bought under the community ownership initiative, which is funded by Arts Council England and supporters who buy "shares" in the buildings.