Sam Fender has given the full amount of his £25k honor cash to the MVT, which operates to protect the UK's small music venues.
He was presented with the prize on October 16 as his third album his work was named the best record of the previous year.
He has chosen to hand the money over to the Music Venues Trust, in acknowledgment of the essential function grassroots venues fulfilled in his early career.
"As an artist wouldn't be doing this success if it wasn't for all the gigs I did around the region, and beyond, when I was starting out," stated the artist. "These locations are legendary, but they are struggling."
From early 2023 onward, at least 150 of these venues have shut down – about 16 percent of the total UK scene.
Recently, major artists like the band Pulp, Coldplay, the singer Katy Perry and Sheeran have all supported the trust in its attempts to support the industry, by applying a small levy to their ticket prices, which benefits smaller concert halls.
He also participated, collecting in excess of £100,000 on his recent tour to assist numerous small stages across the UK.
These funds helped spaces that were dealing with potential shutdown due to difficulties stemming from water damage, fire incidents and personal losses, as well as regulatory hurdles, legal disputes and sound issues.
Additional spaces obtained financial assistance in upgrading facilities and technical equipment that directly benefitted musicians and concertgoers.
"The concept that revenue from performances in major spaces supports the local stages, where it kicks off for musicians like me, is just sensible," Fender has stated.
He is among several artists to donate his Mercury Prize prize money to charitable organizations.
When they received the prize in the year 1996 for their album the album, vocalist Cocker stated that the group would give their cash to the organization War Child.
During 2002, musician Ms Dynamite divided her prize between a few charities, like the NSPCC and a Sickle Cell charity.
"And I contributed a thousand pounds to the center, to their classes, because I did gymnastics when I was younger and they lacked better apparatus," she shared with outlets.
Previously, they gave their funds to the local youth club that nurtured their group, in addition to other independent music bodies.
Also 1994 winners they contributed their award to a charity for MS after a friend was identified with the illness.
"Receiving the award was sufficient," said artist Small. "The prize was the bonus but we could do without the bonus, because we had the main prize. So our success affected somebody else's life."
Last week, the Music Venues Trust shared it had rescued several local spots in the South East, by bringing them into public stewardship.
The Joiners in the city and the other in Bristol were purchased under the community ownership scheme, which is funded by Arts Council England and supporters who acquire "shares" in the venues.
