Sam Fender has handed over the full amount of his £25,000 award prize money to the MVT, which functions to preserve the Britain's grassroots concert spaces.
Fender was presented with the award on mid-October as his new release People Watching was named the best record of the past year.
He has chosen to donate the funds to the Music Venues Trust, in recognition of the crucial part grassroots venues had in his early career.
"I couldn't be pursuing what I am doing today if it hadn't been for all the gigs I did around the North East, and elsewhere, when I was beginning," remarked Fender. "These spaces are iconic, but they are in difficulty."
From early 2023 onward, at least 150 of these venues have shut down – roughly 16% of the entire UK sector.
Recently, top acts including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its attempts to support the industry, by including a small levy to their ticket costs, which benefits independent venues.
He also joined in, raising over £100k on his recent tour to assist 38 local spots across England, Scotland, and Wales.
The donation supported spaces that were confronting potential shutdown due to challenges caused by flooding, fires and family tragedies, as well as permit problems, conflicts and noise complaints.
Additional spaces obtained financial assistance in upgrading facilities and technical equipment that positively impacted performers and audiences.
"The idea that funds from concerts in big venues supports the independent spots, where it begins for musicians like me, is just sensible," Sam Fender has commented.
The musician is not the first artist to contribute his Mercury Prize funds to worthy causes.
When the band won the award in the year 1996 for their record the album, lead singer Jarvis Cocker announced that the group would donate their prize money to the organization the charity.
In 2002, musician Ms Dynamite shared her bounty across a few organizations, like the NSPCC and a charity for Sickle Cell.
"And I donated a thousand pounds to my local community centre, to their classes, because I did gymnastics when I was growing up and they needed new equipment," the artist shared with a publication.
In recent years, they gave their funds to the local youth club that nurtured their band, alongside other grassroots music organisations.
Also winners that year they donated their winnings to a charity for MS after a friend was diagnosed the condition.
"Receiving the award was sufficient," said artist Small. "The money was the extra but we didn't require the bonus, because we had the cake. So our victory touched the lives of others."
Last week, the Music Venues Trust shared it had rescued a couple of grassroots venues in the South East, by placing them under public stewardship.
One venue in that area and the other in the city were purchased under the community ownership initiative, which is funded by a national body and supporters who acquire "ownership units" in the properties.