Sam Fender has donated the complete sum of his £25,000 award cash to the MVT, which works to preserve the UK's independent live music spots.
He was awarded the award on 16 October as his latest record his work was declared the outstanding release of the previous year.
He has opted to hand the money over to the trust, in appreciation of the crucial part local spots played in his early career.
"I would not have achieved what I am doing today if it hadn't been for all the gigs I played around the region, and further afield, when I was starting out," said the artist. "These spaces are iconic, but they are facing challenges."
From early 2023 onward, at least 150 of these venues have ceased operations – about 16% of the entire UK sector.
Over the past year, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its attempts to help venues survive, by including a modest fee to their ticket prices, which supports independent venues.
He also joined in, collecting over £100k on his recent tour to assist numerous local spots across Britain.
The money helped locations that were facing possible closure due to issues stemming from floods, fire incidents and family tragedies, as well as permit problems, legal disputes and noise complaints.
Some locations received monetary aid in upgrading facilities and gear that directly benefitted artists and fans.
"The idea that money from concerts in large arenas backs the smaller venues, where it kicks off for performers like me, is just common sense," Fender has commented.
Fender is not the first artist to donate his Mercury Prize funds to worthy causes.
In they won the trophy in the mid-90s for their release their work, lead singer the singer declared that the band would give their cash to the non-profit the charity.
During 2002, artist Ms Dynamite divided her prize across several good causes, like the NSPCC and a charity for Sickle Cell.
"And I contributed a thousand pounds to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was younger and they lacked updated gear," Ms Dynamite explained to the media.
Two years ago, Ezra Collective donated their funds to the local youth club that supported their act, as well as other local music groups.
Also winners that year they donated their prize to a charity for MS after a friend was diagnosed the illness.
"The victory was ample," said artist Heather Small. "The prize was the extra but we didn't require the cherry, because we had the cake. So our success affected the lives of others."
In the past week, the MVT announced it had protected two grassroots venues in south-east England, by placing them under local control.
The first in the city and The Croft in the city were bought under the Own Our Venues program, which is supported by a national body and enthusiasts who purchase "ownership units" in the properties.
