The star has given the full amount of his £25,000 honor prize money to the MVT, which works to protect the United Kingdom's small concert spaces.
Fender was awarded the award on 16 October as his new release People Watching was declared the best record of the past year.
The musician has decided to hand the money over to the trust, in recognition of the vital role grassroots venues had in his early career.
"As an artist wouldn't be doing my current career if it hadn't been for all the gigs I did around the area, and beyond, when I was just getting going," said Fender. "These spaces are renowned, but they are in difficulty."
From early 2023 onward, over 150 of these spaces have permanently closed – roughly one-sixth of the entire UK sector.
Recently, top acts like Pulp, Coldplay, Katy Perry and Sheeran have all supported the Music Venues Trust in its efforts to support the industry, by adding a modest fee to their ticket costs, which goes to help smaller concert halls.
Sam Fender also took part, raising over £100k on his recent tour to assist thirty-eight grassroots venues across England, Scotland, and Wales.
The donation supported spaces that were dealing with potential shutdown due to challenges arising from floods, fire incidents and family tragedies, as well as permit problems, court cases and neighbor objections.
Other venues received financial assistance in upgrading infrastructure and technical equipment that directly benefitted performers and concertgoers.
"The idea that revenue from shows in major spaces helps the independent spots, where it all starts for artists like me, is just common sense," Fender has said.
He is far from the only musician to donate his award prize money to good deeds.
Back when Pulp earned the trophy in 1996 for their release Different Class, lead singer Jarvis Cocker announced that the band would give their cash to the organization War Child.
In 2002, musician Ms Dynamite shared her prize among a few charities, including the NSPCC and a Sickle Cell charity.
"And I gave a thousand pounds to the center, to their classes, because I practiced gymnastics when I was growing up and they needed updated gear," Ms Dynamite shared with a publication.
In recent years, they donated their funds to the community center that supported their group, alongside other grassroots music organisations.
Additionally the 1994 recipients M People donated their prize to a charity for MS after a friend was diagnosed the condition.
"Receiving the award was ample," stated singer the singer. "The money was the bonus but we didn't require the extra, because we had the main prize. So our winning touched the lives of others."
Recently, the Music Venues Trust revealed it had saved several grassroots venues in that region, by bringing them into community ownership.
The Joiners in Southampton and the second in the city were bought under the public acquisition program, which is supported by the arts council and supporters who acquire "shares" in the properties.
