Sam Fender has handed over the full amount of his £25,000 award winnings to the Music Venues Trust, which functions to protect the Britain's grassroots music venues.
The star was awarded the award on 16 October as his latest record his work was declared the outstanding release of the last 12 months.
Fender has chosen to give the cash to the trust, in recognition of the crucial part grassroots venues fulfilled in his initial steps.
"I couldn't be pursuing this success if it wasn't for all the shows I did around the North East, and further afield, when I was beginning," remarked Sam Fender. "These venues are renowned, but they are facing challenges."
From early 2023 onward, more than 150 of these spaces have ceased operations – roughly 16 percent of the whole industry in the UK.
In the last year, major artists like Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its attempts to support the industry, by including a small levy to their ticket costs, which goes to help independent venues.
He also joined in, raising more than £100,000 on his recent tour to support 38 small stages across England, Scotland, and Wales.
The money assisted spaces that were dealing with possible closure due to challenges caused by floods, fire incidents and bereavements, as well as licensing issues, court cases and noise complaints.
Additional spaces obtained financial assistance in improving amenities and sound and lighting systems that directly benefitted performers and audiences.
"The notion that funds from concerts in large arenas backs the smaller venues, where it kicks off for musicians like me, is just common sense," Fender has stated.
The musician is far from the only musician to contribute his Mercury Prize funds to charitable organizations.
When Pulp received the award in 1996 for their release Different Class, frontman Jarvis Cocker declared that the band would contribute their prize money to the charity the charity.
That year, musician she divided her prize among multiple organizations, such as the NSPCC and a Sickle Cell charity.
"Additionally, I gave a thousand pounds to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was younger and they lacked better apparatus," Ms Dynamite told a publication.
Previously, the band donated their prize money to the community center that developed their group, alongside other local music groups.
Also the 1994 recipients the group contributed their prize to a charity for MS after a close contact was found to have the illness.
"Receiving the award was sufficient," said artist Small. "The cash was the extra but we could do without the extra, because we had the cake. So our success touched the lives of others."
Recently, the trust revealed it had saved several small stages in the South East, by placing them under public stewardship.
The first in that area and the other in the city were acquired under the community ownership program, which is funded by a national body and enthusiasts who acquire "shares" in the venues.