Sam Fender has given the full amount of his £25k honor cash to the MVT, which works to save the United Kingdom's small concert spaces.
The star was presented with the prize on 16 October as his new release People Watching was declared the best record of the past year.
He has opted to give the cash to the Music Venues Trust, in acknowledgment of the vital role grassroots venues fulfilled in his early career.
"I personally wouldn't be doing this success if it hadn't been for all the performances I did around the region, and further afield, when I was starting out," said Sam Fender. "These venues are renowned, but they are in difficulty."
Since the start of 2023, over 150 of these venues have ceased operations – roughly one-sixth of the entire UK sector.
In the last year, top acts like Pulp, Coldplay, Katy Perry and Sheeran have all backed the MVT in its initiatives to help venues survive, by adding a modest fee to their ticket prices, which benefits independent venues.
Sam Fender also joined in, collecting over £100k on his live tour to help thirty-eight small stages across the UK.
These funds supported spaces that were dealing with possible closure due to difficulties caused by water damage, fire incidents and personal losses, as well as regulatory hurdles, conflicts and sound issues.
Other venues received funding support in modernizing facilities and sound and lighting systems that directly benefitted performers and fans.
"The concept that money from shows in big venues backs the smaller venues, where it kicks off for musicians like me, is just sensible," the star has stated.
Fender is among several artists to donate his Mercury Prize winnings to charitable organizations.
Back when they won the prize in the mid-90s for their record the album, frontman Cocker declared that the act would contribute their cash to the non-profit the charity.
During 2002, artist the artist split her bounty among several organizations, like the NSPCC and a Sickle Cell charity.
"I also donated a £1,000 to the center, to their gymnastics class, because I trained in gymnastics when I was a child and they required new equipment," the artist explained to outlets.
Two years ago, they donated their winnings to the community center that supported their band, alongside other grassroots music organisations.
Also winners that year M People gave their award to a MS organization after a acquaintance was found to have the condition.
"Receiving the award was quite enough," stated artist the singer. "The cash was the bonus but we didn't require the bonus, because we had the main prize. So our victory affected the lives of others."
Last week, the trust shared it had protected two local spots in that region, by bringing them into public stewardship.
The first in that area and The Croft in the city were purchased under the community ownership initiative, which is backed by a national body and enthusiasts who purchase "stakes" in the venues.