Sam Fender has given the full amount of his twenty-five thousand pound honor cash to the MVT, which works to preserve the UK's grassroots live music spots.
The star was awarded the award on October 16 as his new release his work was declared the top album of the past year.
The musician has opted to donate the funds to the Music Venues Trust, in recognition of the crucial part grassroots venues played in his beginning days.
"As an artist wouldn't be doing what I am doing today if it wasn't for all the performances I did around the North East, and elsewhere, when I was beginning," remarked the artist. "These spaces are renowned, but they are struggling."
Beginning in 2023, over 150 of these spaces have ceased operations – about 16% of the entire UK sector.
Recently, top acts such as the band Pulp, Coldplay, the singer Katy Perry and Sheeran have all aided the trust in its efforts to help venues survive, by applying a small levy to their admission fees, which benefits smaller concert halls.
He also took part, raising over £100k on his recent tour to support thirty-eight grassroots venues across Britain.
The money helped venues that were confronting possible closure due to issues stemming from flooding, blazes and bereavements, as well as regulatory hurdles, conflicts and neighbor objections.
Other venues obtained funding support in upgrading amenities and technical equipment that directly benefitted artists and concertgoers.
"The concept that money from concerts in major spaces helps the independent spots, where it kicks off for musicians like me, is just logical," the star has said.
Fender is not the first artist to contribute his Mercury Prize prize money to good deeds.
In Pulp won the prize in the year 1996 for their album their work, frontman Jarvis Cocker declared that the act would give their cash to the organization War Child.
That year, rapper and singer she split her prize across a few organizations, such as the NSPCC and a Sickle Cell organization.
"I also contributed a thousand pounds to my local community centre, to their classes, because I practiced gymnastics when I was a child and they required better apparatus," Ms Dynamite shared with a publication.
Previously, the band donated their winnings to the community center that supported their group, alongside other local music groups.
Also winners that year M People gave their award to a multiple sclerosis charity after a friend was diagnosed the condition.
"Receiving the award was quite enough," said singer the singer. "The money was the cherry on top but we could do without the extra, because we had the cake. So our winning touched somebody else's life."
Last week, the trust shared it had rescued two local spots in south-east England, by placing them under local control.
The Joiners in that area and the other in the city were purchased under the public acquisition initiative, which is funded by the arts council and supporters who purchase "shares" in the venues.