Sam Fender has donated the full amount of his £25,000 award cash to the trust for venues, which works to protect the Britain's independent concert spaces.
The star was presented with the award on October 16 as his third album People Watching was named the top album of the previous year.
He has decided to give the cash to the trust, in acknowledgment of the essential function small stages played in his initial steps.
"As an artist couldn't be pursuing what I am doing today if it weren't for all the performances I did around the North East, and further afield, when I was starting out," said Sam Fender. "These venues are iconic, but they are struggling."
From early 2023 onward, at least 150 of these spaces have ceased operations – approximately one-sixth of the whole industry in the UK.
In the last year, major artists such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to help venues survive, by applying a modest fee to their admission fees, which goes to help independent venues.
Sam Fender also joined in, collecting more than £100,000 on his recent tour to assist 38 grassroots venues across Britain.
The money assisted venues that were dealing with imminent closure due to issues caused by flooding, fires and bereavements, as well as regulatory hurdles, conflicts and noise complaints.
Additional spaces obtained monetary aid in upgrading amenities and technical equipment that directly benefitted performers and audiences.
"The notion that revenue from concerts in major spaces supports the independent spots, where it all starts for musicians like me, is just sensible," the star has commented.
The musician is not the first artist to donate his Mercury Prize funds to worthy causes.
In Pulp won the award in the year 1996 for their record the album, vocalist Cocker declared that the band would give their cash to the organization the charity.
During 2002, rapper and singer Ms Dynamite shared her prize among several good causes, like the NSPCC and a charity for Sickle Cell.
"And I contributed a thousand pounds to the center, to their gymnastics program, because I practiced gymnastics when I was growing up and they required better apparatus," the artist shared with the media.
In recent years, the band gave their funds to the community center that nurtured their band, alongside other local music groups.
Additionally the 1994 recipients the group donated their prize to a MS organization after a close contact was found to have the disease.
"Receiving the award was quite enough," said singer Small. "The prize was the bonus but we didn't require the cherry, because we had the main prize. So our victory affected another person's life."
Recently, the MVT announced it had rescued a couple of local spots in that region, by transferring them to public stewardship.
The first in that area and the other in the city were bought under the community ownership program, which is supported by the arts council and music fans who buy "shares" in the properties.