Sam Fender has given the full amount of his £25,000 award cash to the MVT, which operates to protect the UK's small concert spaces.
He was awarded the cheque on 16 October as his third album the album was chosen as the top album of the last 12 months.
He has opted to give the cash to the MVT, in recognition of the vital role grassroots venues played in his early career.
"I personally would not have achieved this success if it hadn't been for all the shows I played around the area, and elsewhere, when I was starting out," remarked Sam Fender. "These spaces are renowned, but they are facing challenges."
From early 2023 onward, more than 150 of these locations have permanently closed – about 16 percent of the total UK scene.
Over the past year, well-known musicians such as the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its attempts to help venues survive, by applying a minor surcharge to their admission fees, which goes to help smaller concert halls.
He also joined in, collecting more than £100,000 on his recent tour to assist 38 grassroots venues across England, Scotland, and Wales.
The money assisted spaces that were facing possible closure due to issues caused by water damage, fire incidents and bereavements, as well as licensing issues, court cases and neighbor objections.
Additional spaces obtained monetary aid in improving infrastructure and gear that directly benefitted artists and audiences.
"The notion that revenue from shows in major spaces backs the independent spots, where it all starts for performers like me, is just common sense," the star has stated.
He is among several artists to donate his Mercury Prize winnings to good deeds.
Back when the band received the award in the year 1996 for their album the album, vocalist Jarvis Cocker declared that the act would contribute their prize money to the organization the charity.
In 2002, rapper and singer Ms Dynamite split her bounty among a few organizations, like the NSPCC and a Sickle Cell charity.
"And I contributed a £1,000 to my local community centre, to their gymnastics program, because I trained in gymnastics when I was growing up and they lacked updated gear," she explained to outlets.
In recent years, the band contributed their prize money to the community center that developed their act, in addition to other independent music bodies.
Also 1994 winners M People contributed their prize to a MS organization after a acquaintance was found to have the disease.
"Winning was quite enough," said vocalist Small. "The money was the bonus but we didn't require the cherry, because we had the cake. So our success impacted somebody else's life."
Last week, the trust revealed it had rescued a couple of local spots in the South East, by bringing them into local control.
One venue in that area and the second in the city were bought under the Own Our Venues initiative, which is funded by Arts Council England and enthusiasts who acquire "ownership units" in the buildings.