Sam Fender has given the full amount of his £25k award prize money to the trust for venues, which works to preserve the Britain's small music venues.
He was given the award on mid-October as his latest record People Watching was chosen as the best record of the past year.
He has opted to hand the money over to the MVT, in recognition of the vital role local spots played in his early career.
"I would not have achieved this success if it weren't for all the shows I did around the region, and beyond, when I was starting out," stated Sam Fender. "These spaces are iconic, but they are in difficulty."
Since the start of 2023, at least 150 of these spaces have shut down – about 16 percent of the total UK scene.
Recently, major artists such as Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its initiatives to support the industry, by applying a small levy to their ticket prices, which goes to help local stages.
Fender also joined in, raising more than £100,000 on his live tour to assist numerous local spots across England, Scotland, and Wales.
These funds assisted locations that were dealing with possible closure due to issues caused by floods, blazes and personal losses, as well as permit problems, legal disputes and noise complaints.
Some locations received financial assistance in improving infrastructure and technical equipment that helped artists and concertgoers.
"The notion that money from shows in big venues supports the independent spots, where it begins for performers like me, is just sensible," Sam Fender has commented.
He is far from the only musician to contribute his Mercury Prize funds to worthy causes.
Back when the band won the trophy in the mid-90s for their release their work, frontman Jarvis Cocker stated that the band would contribute their winnings to the charity War Child.
During 2002, rapper and singer Ms Dynamite shared her prize across a few organizations, including the NSPCC and a charity for Sickle Cell.
"And I donated a £1,000 to the center, to their classes, because I practiced gymnastics when I was growing up and they required new equipment," Ms Dynamite shared with outlets.
In recent years, the band donated their prize money to the community center that developed their band, as well as other independent music bodies.
Additionally the 1994 recipients they contributed their winnings to a charity for MS after a acquaintance was diagnosed the condition.
"The victory was sufficient," remarked singer Heather Small. "The cash was the bonus but we didn't require the cherry, because we had the main prize. So our victory affected the lives of others."
Recently, the Music Venues Trust announced it had rescued two small stages in south-east England, by bringing them into public stewardship.
The Joiners in the city and the other in the city were bought under the community ownership program, which is supported by Arts Council England and music fans who purchase "stakes" in the venues.