Sam Fender has given the full amount of his £25k award cash to the trust for venues, which operates to save the UK's grassroots concert spaces.
Fender was given the award on mid-October as his latest record the album was named the outstanding release of the last 12 months.
He has opted to hand the money over to the trust, in recognition of the vital role local spots had in his early career.
"I would not have achieved my current career if it hadn't been for all the shows I did around the North East, and elsewhere, when I was beginning," remarked Fender. "These venues are legendary, but they are facing challenges."
From early 2023 onward, at least 150 of these spaces have permanently closed – about 16 percent of the total UK scene.
In the last year, top acts including the band Pulp, Coldplay, Katy Perry and Sheeran have all backed the MVT in its efforts to keep the scene afloat, by including a modest fee to their ticket prices, which benefits independent venues.
Fender also took part, raising in excess of £100,000 on his recent tour to assist 38 small stages across Britain.
These funds assisted venues that were confronting imminent closure due to difficulties stemming from floods, fires and family tragedies, as well as regulatory hurdles, conflicts and noise complaints.
Other venues were granted financial assistance in improving amenities and technical equipment that positively impacted musicians and fans.
"The idea that money from concerts in big venues backs the smaller venues, where it all starts for performers like me, is just logical," Fender has stated.
Fender is not the first artist to contribute his Mercury Prize prize money to worthy causes.
When the band won the trophy in the year 1996 for their album Different Class, frontman the singer announced that the band would give their cash to the non-profit War Child.
That year, rapper and singer Ms Dynamite split her award between several organizations, like the NSPCC and a Sickle Cell charity.
"I also gave a £1,000 to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was a child and they lacked updated gear," she shared with a publication.
Two years ago, they donated their funds to the youth organization that nurtured their group, in addition to other local music groups.
And winners that year M People donated their award to a charity for MS after a close contact was diagnosed the illness.
"Receiving the award was sufficient," remarked singer Small. "The prize was the cherry on top but we didn't require the cherry, because we had the main prize. So our success touched another person's life."
In the past week, the MVT revealed it had saved a couple of small stages in south-east England, by placing them under community ownership.
One venue in Southampton and the other in the city were purchased under the public acquisition initiative, which is backed by the arts council and enthusiasts who acquire "ownership units" in the venues.
