The artist has given the entirety of his £25,000 award cash to the trust for venues, which works to save the UK's grassroots music venues.
The star was given the prize on 16 October as his new release the album was named the best record of the past year.
He has opted to donate the funds to the trust, in appreciation of the essential function small stages played in his early career.
"I couldn't be pursuing what I am doing today if it wasn't for all the gigs I played around the North East, and elsewhere, when I was just getting going," said Fender. "These locations are legendary, but they are in difficulty."
Since the start of 2023, at least 150 of these venues have shut down – about 16 percent of the whole industry in the UK.
Over the past year, major artists like Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its efforts to keep the scene afloat, by adding a modest fee to their ticket costs, which benefits independent venues.
Sam Fender also took part, raising over £100k on his recent tour to help 38 local spots across England, Scotland, and Wales.
These funds assisted spaces that were confronting possible closure due to issues arising from floods, blazes and personal losses, as well as regulatory hurdles, legal disputes and noise complaints.
Other venues were granted financial assistance in modernizing infrastructure and technical equipment that helped performers and fans.
"The idea that money from shows in major spaces supports the smaller venues, where it all starts for performers like me, is just logical," Sam Fender has commented.
The musician is among several artists to give his award prize money to worthy causes.
When the band earned the trophy in the mid-90s for their record the album, frontman Cocker declared that the group would contribute their cash to the organization the charity.
In 2002, musician Ms Dynamite split her prize across several organizations, such as the NSPCC and a Sickle Cell charity.
"Additionally, I donated a grand to Highgate Newtown, to their classes, because I practiced gymnastics when I was a child and they required updated gear," Ms Dynamite told outlets.
Two years ago, they gave their funds to the local youth club that developed their band, in addition to other grassroots music organisations.
Additionally winners that year M People donated their winnings to a charity for MS after a close contact was found to have the condition.
"The victory was ample," stated artist Heather Small. "The cash was the extra but we didn't need the extra, because we had the cake. So our victory touched somebody else's life."
Recently, the Music Venues Trust revealed it had saved a couple of small stages in that region, by placing them under community ownership.
One venue in that area and the second in the city were acquired under the community ownership initiative, which is backed by a national body and supporters who buy "shares" in the properties.
