The star has handed over the full amount of his £25,000 award cash to the Music Venues Trust, which works to preserve the UK's independent concert spaces.
The star was awarded the cheque on mid-October as his new release People Watching was declared the best record of the previous year.
The musician has decided to hand the money over to the Music Venues Trust, in appreciation of the crucial part small stages had in his initial steps.
"I personally wouldn't be doing this success if it weren't for all the gigs I did around the North East, and elsewhere, when I was starting out," remarked the artist. "These locations are renowned, but they are struggling."
Beginning in 2023, at least 150 of these venues have permanently closed – roughly one-sixth of the total UK scene.
Recently, well-known musicians such as the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its efforts to keep the scene afloat, by applying a minor surcharge to their admission fees, which supports smaller concert halls.
Sam Fender also participated, raising more than £100,000 on his 2024 arena tour to assist numerous small stages across the UK.
The donation assisted locations that were dealing with potential shutdown due to issues stemming from water damage, fire incidents and family tragedies, as well as permit problems, conflicts and neighbor objections.
Some locations received financial assistance in improving amenities and technical equipment that helped musicians and concertgoers.
"The concept that funds from performances in large arenas backs the local stages, where it kicks off for artists like me, is just common sense," Fender has said.
The musician is not the first artist to donate his award funds to worthy causes.
When Pulp received the award in 1996 for their release Different Class, lead singer Cocker announced that the band would donate their cash to the charity War Child.
During 2002, artist she split her bounty among several good causes, including the NSPCC and a charity for Sickle Cell.
"Additionally, I donated a £1,000 to my local community centre, to their classes, because I practiced gymnastics when I was younger and they lacked better apparatus," Ms Dynamite told the media.
In recent years, they donated their prize money to the community center that developed their act, as well as other local music groups.
Also the 1994 recipients the group contributed their award to a charity for MS after a close contact was identified with the illness.
"The victory was sufficient," remarked vocalist Small. "The money was the cherry on top but we didn't need the bonus, because we had the main prize. So our success touched the lives of others."
Last week, the Music Venues Trust revealed it had saved a couple of small stages in that region, by transferring them to public stewardship.
One venue in the city and the other in Bristol were acquired under the community ownership scheme, which is funded by a national body and music fans who buy "shares" in the venues.