Sam Fender has given the full amount of his £25k honor cash to the MVT, which functions to save the United Kingdom's grassroots live music spots.
Fender was presented with the award on 16 October as his new release his work was declared the best record of the previous year.
He has opted to give the cash to the trust, in recognition of the essential function local spots fulfilled in his early career.
"I wouldn't be doing what I am doing today if it weren't for all the gigs I played around the region, and further afield, when I was beginning," stated the artist. "These spaces are renowned, but they are in difficulty."
From early 2023 onward, more than 150 of these locations have ceased operations – approximately 16% of the whole industry in the UK.
In the last year, top acts like Pulp, Coldplay, Katy Perry and Sheeran have all supported the MVT in its initiatives to keep the scene afloat, by including a minor surcharge to their admission fees, which goes to help smaller concert halls.
Fender also participated, raising in excess of £100,000 on his recent tour to assist numerous grassroots venues across the UK.
The donation helped locations that were facing potential shutdown due to issues arising from flooding, blazes and bereavements, as well as regulatory hurdles, legal disputes and noise complaints.
Some locations obtained financial assistance in improving amenities and gear that positively impacted performers and concertgoers.
"The notion that funds from performances in large arenas backs the local stages, where it begins for performers like me, is just sensible," Fender has said.
He is far from the only musician to give his Mercury Prize winnings to worthy causes.
In the band received the award in the year 1996 for their album their work, frontman the singer announced that the act would donate their cash to the non-profit War Child.
That year, artist Ms Dynamite shared her award across several charities, such as the NSPCC and a Sickle Cell organization.
"Additionally, I gave a £1,000 to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was a child and they needed updated gear," she explained to outlets.
Two years ago, they gave their prize money to the community center that developed their act, in addition to other grassroots music organisations.
Also winners that year M People gave their award to a MS organization after a close contact was found to have the disease.
"The victory was ample," remarked vocalist Small. "The prize was the bonus but we didn't require the extra, because we had the cake. So our victory touched the lives of others."
Last week, the MVT revealed it had protected a couple of grassroots venues in south-east England, by bringing them into public stewardship.
The Joiners in the city and the other in that location were bought under the Own Our Venues scheme, which is backed by a national body and enthusiasts who buy "ownership units" in the buildings.