Sam Fender has donated the full amount of his twenty-five thousand pound honor cash to the trust for venues, which works to save the UK's independent concert spaces.
He was given the prize on October 16 as his third album his work was declared the top album of the past year.
The musician has opted to donate the funds to the trust, in recognition of the crucial part grassroots venues played in his initial steps.
"I personally would not have achieved what I am doing today if it wasn't for all the gigs I performed around the North East, and elsewhere, when I was just getting going," remarked Fender. "These locations are renowned, but they are struggling."
Since the start of 2023, over 150 of these venues have ceased operations – about one-sixth of the whole industry in the UK.
Recently, well-known musicians including Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the MVT in its efforts to keep the scene afloat, by adding a small levy to their admission fees, which benefits smaller concert halls.
Sam Fender also took part, raising over £100k on his 2024 arena tour to assist 38 local spots across England, Scotland, and Wales.
These funds assisted venues that were dealing with possible closure due to issues arising from floods, fires and bereavements, as well as regulatory hurdles, court cases and noise complaints.
Additional spaces were granted financial assistance in upgrading infrastructure and technical equipment that directly benefitted artists and audiences.
"The concept that revenue from performances in major spaces helps the independent spots, where it kicks off for artists like me, is just sensible," the star has commented.
He is among several artists to contribute his Mercury Prize prize money to charitable organizations.
Back when Pulp received the trophy in 1996 for their release Different Class, frontman the singer announced that the band would contribute their cash to the charity the charity.
That year, rapper and singer the artist shared her prize among multiple organizations, such as the NSPCC and a charity for Sickle Cell.
"Additionally, I donated a £1,000 to the center, to their gymnastics program, because I trained in gymnastics when I was a child and they required updated gear," Ms Dynamite told outlets.
Two years ago, they donated their prize money to the youth organization that developed their act, as well as other independent music bodies.
Additionally winners that year M People contributed their award to a multiple sclerosis charity after a close contact was identified with the disease.
"Receiving the award was ample," stated singer Heather Small. "The money was the cherry on top but we didn't require the cherry, because we had the main prize. So our victory touched the lives of others."
Recently, the Music Venues Trust revealed it had saved several local spots in south-east England, by transferring them to community ownership.
The Joiners in the city and The Croft in that location were bought under the Own Our Venues program, which is supported by Arts Council England and enthusiasts who purchase "stakes" in the venues.