Sam Fender has handed over the full amount of his £25k honor cash to the trust for venues, which functions to save the UK's independent concert spaces.
He was given the award on 16 October as his third album People Watching was chosen as the top album of the past year.
He has opted to give the cash to the trust, in acknowledgment of the crucial part local spots had in his early career.
"I personally would not have achieved my current career if it wasn't for all the performances I played around the North East, and further afield, when I was just getting going," said Fender. "These venues are iconic, but they are facing challenges."
Since the start of 2023, at least 150 of these spaces have ceased operations – about 16% of the whole industry in the UK.
Over the past year, major artists such as the band Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all supported the trust in its attempts to keep the scene afloat, by applying a modest fee to their admission fees, which supports smaller concert halls.
Sam Fender also participated, raising over £100k on his 2024 arena tour to help numerous grassroots venues across the UK.
The donation supported venues that were confronting imminent closure due to difficulties stemming from flooding, fire incidents and bereavements, as well as regulatory hurdles, court cases and sound issues.
Some locations obtained funding support in improving infrastructure and technical equipment that directly benefitted musicians and fans.
"The notion that revenue from shows in large arenas supports the local stages, where it kicks off for artists like me, is just common sense," Sam Fender has commented.
Fender is not the first artist to donate his award winnings to good deeds.
When the band earned the award in the year 1996 for their album their work, lead singer Cocker announced that the band would give their winnings to the non-profit War Child.
During 2002, rapper and singer Ms Dynamite split her prize between multiple charities, like the children's charity and a Sickle Cell charity.
"I also contributed a grand to Highgate Newtown, to their classes, because I practiced gymnastics when I was younger and they required updated gear," she explained to outlets.
In recent years, the band gave their winnings to the local youth club that supported their group, as well as other grassroots music organisations.
Additionally winners that year the group gave their winnings to a MS organization after a close contact was identified with the illness.
"Winning was ample," stated singer Heather Small. "The cash was the cherry on top but we could do without the bonus, because we had the main prize. So our victory impacted somebody else's life."
In the past week, the trust revealed it had rescued several grassroots venues in south-east England, by transferring them to community ownership.
One venue in the city and the other in Bristol were purchased under the Own Our Venues scheme, which is funded by a national body and enthusiasts who acquire "stakes" in the properties.