Sam Fender has given the entirety of his £25,000 award cash to the MVT, which works to protect the UK's grassroots live music spots.
The star was presented with the prize on 16 October as his new release People Watching was declared the outstanding release of the last 12 months.
He has chosen to donate the funds to the MVT, in recognition of the vital role grassroots venues had in his early career.
"I personally would not have achieved my current career if it weren't for all the performances I played around the region, and elsewhere, when I was starting out," remarked Sam Fender. "These locations are iconic, but they are in difficulty."
Since the start of 2023, more than 150 of these venues have permanently closed – about one-sixth of the entire UK sector.
Over the past year, top acts such as Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its efforts to help venues survive, by applying a minor surcharge to their admission fees, which goes to help smaller concert halls.
He also joined in, collecting more than £100,000 on his 2024 arena tour to help 38 small stages across England, Scotland, and Wales.
These funds helped venues that were dealing with possible closure due to challenges caused by flooding, blazes and personal losses, as well as permit problems, conflicts and sound issues.
Some locations received funding support in upgrading amenities and gear that directly benefitted musicians and concertgoers.
"The notion that revenue from shows in large arenas backs the independent spots, where it begins for artists like me, is just logical," the star has commented.
Fender is far from the only musician to contribute his Mercury Prize funds to worthy causes.
When the band received the trophy in 1996 for their release their work, frontman Cocker stated that the band would contribute their winnings to the organization War Child.
During 2002, musician the artist shared her bounty between several charities, such as the children's charity and a Sickle Cell charity.
"I also donated a grand to the center, to their classes, because I trained in gymnastics when I was younger and they required better apparatus," she told a publication.
Two years ago, they contributed their funds to the local youth club that nurtured their band, alongside other grassroots music organisations.
And 1994 winners M People gave their winnings to a MS organization after a acquaintance was identified with the illness.
"Winning was quite enough," said artist the singer. "The prize was the cherry on top but we didn't need the bonus, because we had the main prize. So our winning affected somebody else's life."
Recently, the Music Venues Trust revealed it had rescued a couple of local spots in south-east England, by bringing them into local control.
The Joiners in that area and the other in Bristol were purchased under the Own Our Venues program, which is funded by the arts council and supporters who buy "shares" in the buildings.