Sam Fender has handed over the entirety of his £25k honor cash to the MVT, which functions to protect the UK's grassroots live music spots.
The star was awarded the award on October 16 as his new release the album was declared the top album of the past year.
The musician has decided to hand the money over to the trust, in acknowledgment of the crucial part grassroots venues fulfilled in his early career.
"As an artist wouldn't be doing this success if it weren't for all the gigs I played around the region, and further afield, when I was beginning," said Fender. "These locations are iconic, but they are facing challenges."
From early 2023 onward, at least 150 of these locations have permanently closed – approximately 16% of the entire UK sector.
In the last year, top acts including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its initiatives to help venues survive, by applying a modest fee to their ticket costs, which benefits independent venues.
Fender also participated, raising over £100k on his live tour to support thirty-eight small stages across the UK.
The money helped spaces that were facing potential shutdown due to challenges arising from floods, blazes and bereavements, as well as permit problems, conflicts and noise complaints.
Additional spaces obtained financial assistance in improving facilities and gear that helped performers and concertgoers.
"The concept that funds from concerts in big venues helps the smaller venues, where it kicks off for musicians like me, is just sensible," Sam Fender has stated.
He is not the first artist to contribute his Mercury Prize prize money to good deeds.
When the band received the trophy in the mid-90s for their record their work, frontman Cocker declared that the act would give their cash to the non-profit the charity.
In 2002, musician Ms Dynamite divided her prize among multiple charities, including the NSPCC and a Sickle Cell organization.
"I also gave a thousand pounds to the center, to their gymnastics class, because I trained in gymnastics when I was a child and they needed new equipment," Ms Dynamite shared with outlets.
Two years ago, Ezra Collective gave their prize money to the youth organization that developed their band, as well as other independent music bodies.
And 1994 winners the group donated their prize to a multiple sclerosis charity after a close contact was identified with the condition.
"The victory was ample," remarked artist Small. "The cash was the extra but we didn't require the bonus, because we had the cake. So our success touched the lives of others."
Last week, the trust revealed it had protected several local spots in that region, by bringing them into local control.
The first in that area and The Croft in that location were bought under the community ownership scheme, which is supported by a national body and music fans who buy "ownership units" in the buildings.