Sam Fender has given the complete sum of his £25k honor cash to the MVT, which works to save the UK's independent concert spaces.
He was given the award on October 16 as his new release his work was declared the best record of the previous year.
Fender has decided to donate the funds to the Music Venues Trust, in recognition of the essential function small stages fulfilled in his beginning days.
"I couldn't be pursuing what I am doing today if it wasn't for all the performances I performed around the North East, and further afield, when I was starting out," said Sam Fender. "These venues are iconic, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have permanently closed – about one-sixth of the entire UK sector.
Recently, well-known musicians such as Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its efforts to help venues survive, by applying a modest fee to their admission fees, which supports independent venues.
He also participated, raising more than £100,000 on his 2024 arena tour to support numerous small stages across England, Scotland, and Wales.
These funds helped locations that were dealing with possible closure due to issues arising from floods, fire incidents and family tragedies, as well as permit problems, court cases and noise complaints.
Other venues obtained funding support in improving infrastructure and technical equipment that positively impacted performers and concertgoers.
"The concept that revenue from performances in major spaces backs the smaller venues, where it kicks off for artists like me, is just common sense," the star has stated.
He is not the first artist to donate his Mercury Prize prize money to worthy causes.
Back when they earned the prize in the mid-90s for their release the album, vocalist the singer announced that the act would contribute their winnings to the non-profit War Child.
That year, musician the artist shared her bounty between several organizations, including the NSPCC and a Sickle Cell organization.
"Additionally, I contributed a £1,000 to the center, to their classes, because I did gymnastics when I was growing up and they needed new equipment," she explained to the media.
Previously, the band gave their prize money to the community center that developed their group, alongside other independent music bodies.
And the 1994 recipients M People gave their prize to a charity for MS after a friend was diagnosed the condition.
"Winning was quite enough," said artist Heather Small. "The money was the bonus but we didn't need the cherry, because we had the main prize. So our victory affected another person's life."
In the past week, the trust announced it had protected two grassroots venues in south-east England, by transferring them to community ownership.
The Joiners in that area and the other in Bristol were acquired under the community ownership initiative, which is funded by the arts council and enthusiasts who buy "shares" in the buildings.