Sam Fender has given the complete sum of his £25k award cash to the Music Venues Trust, which works to save the UK's independent live music spots.
The star was awarded the prize on 16 October as his new release the album was declared the outstanding release of the previous year.
Fender has chosen to donate the funds to the MVT, in appreciation of the crucial part grassroots venues had in his early career.
"I personally wouldn't be doing my current career if it weren't for all the gigs I played around the North East, and further afield, when I was starting out," said Fender. "These spaces are legendary, but they are in difficulty."
Since the start of 2023, more than 150 of these venues have permanently closed – about 16% of the total UK scene.
Over the past year, major artists including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its attempts to support the industry, by adding a minor surcharge to their ticket costs, which benefits smaller concert halls.
He also joined in, generating over £100k on his live tour to help numerous small stages across the UK.
The donation helped locations that were confronting potential shutdown due to challenges arising from flooding, fires and family tragedies, as well as licensing issues, court cases and neighbor objections.
Additional spaces were granted financial assistance in modernizing infrastructure and technical equipment that positively impacted artists and audiences.
"The notion that revenue from performances in big venues helps the independent spots, where it all starts for artists like me, is just sensible," the star has stated.
He is not the first artist to give his Mercury Prize funds to charitable organizations.
Back when Pulp won the award in the year 1996 for their release the album, vocalist Jarvis Cocker stated that the group would contribute their cash to the organization the charity.
In 2002, musician she split her award among a few good causes, such as the children's charity and a Sickle Cell charity.
"And I gave a thousand pounds to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was younger and they needed better apparatus," the artist told a publication.
Previously, Ezra Collective contributed their prize money to the youth organization that nurtured their group, in addition to other local music groups.
Also winners that year M People gave their winnings to a multiple sclerosis charity after a close contact was diagnosed the disease.
"Receiving the award was quite enough," said artist Small. "The cash was the cherry on top but we didn't require the bonus, because we had the honor. So our winning touched the lives of others."
Recently, the MVT announced it had rescued two small stages in the South East, by transferring them to community ownership.
The first in Southampton and The Croft in the city were acquired under the community ownership initiative, which is backed by the arts council and music fans who purchase "stakes" in the buildings.