Sam Fender has handed over the full amount of his £25k honor cash to the MVT, which works to preserve the Britain's small concert spaces.
The star was presented with the prize on 16 October as his latest record People Watching was named the top album of the previous year.
He has opted to donate the funds to the Music Venues Trust, in recognition of the vital role small stages fulfilled in his initial steps.
"As an artist couldn't be pursuing my current career if it hadn't been for all the shows I performed around the area, and beyond, when I was just getting going," said Fender. "These spaces are renowned, but they are facing challenges."
Since the start of 2023, over 150 of these locations have ceased operations – approximately one-sixth of the whole industry in the UK.
Over the past year, major artists such as the band Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the Music Venues Trust in its attempts to keep the scene afloat, by including a modest fee to their admission fees, which benefits independent venues.
Fender also took part, raising in excess of £100,000 on his recent tour to support numerous grassroots venues across England, Scotland, and Wales.
These funds helped venues that were dealing with possible closure due to difficulties stemming from water damage, fires and personal losses, as well as permit problems, court cases and neighbor objections.
Some locations were granted financial assistance in upgrading facilities and sound and lighting systems that positively impacted musicians and audiences.
"The notion that funds from performances in big venues helps the local stages, where it begins for musicians like me, is just logical," the star has said.
Fender is far from the only musician to give his Mercury Prize prize money to worthy causes.
Back when they won the prize in 1996 for their release the album, vocalist the singer stated that the band would give their cash to the charity the charity.
During 2002, musician Ms Dynamite shared her award among a few charities, such as the NSPCC and a charity for Sickle Cell.
"And I gave a grand to the center, to their gymnastics program, because I did gymnastics when I was younger and they needed better apparatus," Ms Dynamite explained to a publication.
Two years ago, Ezra Collective donated their winnings to the community center that nurtured their act, as well as other grassroots music organisations.
Additionally winners that year M People gave their prize to a MS organization after a friend was found to have the illness.
"Receiving the award was quite enough," stated vocalist Heather Small. "The money was the bonus but we didn't require the bonus, because we had the cake. So our victory touched somebody else's life."
Last week, the Music Venues Trust announced it had saved a couple of small stages in south-east England, by bringing them into public stewardship.
One venue in Southampton and the other in that location were purchased under the community ownership program, which is supported by Arts Council England and enthusiasts who buy "shares" in the venues.
