Sam Fender has handed over the full amount of his £25,000 honor cash to the trust for venues, which works to protect the UK's independent music venues.
He was presented with the prize on mid-October as his new release the album was chosen as the best record of the past year.
The musician has opted to donate the funds to the MVT, in acknowledgment of the crucial part local spots fulfilled in his beginning days.
"I personally would not have achieved what I am doing today if it weren't for all the shows I did around the North East, and elsewhere, when I was just getting going," said Sam Fender. "These locations are renowned, but they are struggling."
Since the start of 2023, at least 150 of these spaces have shut down – approximately 16 percent of the total UK scene.
Over the past year, well-known musicians including the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its attempts to keep the scene afloat, by applying a small levy to their ticket prices, which supports smaller concert halls.
Fender also took part, collecting over £100k on his live tour to assist 38 grassroots venues across England, Scotland, and Wales.
These funds assisted venues that were facing potential shutdown due to issues caused by floods, fire incidents and family tragedies, as well as licensing issues, court cases and sound issues.
Some locations received monetary aid in improving facilities and sound and lighting systems that directly benefitted musicians and concertgoers.
"The notion that funds from concerts in major spaces supports the independent spots, where it kicks off for musicians like me, is just logical," Sam Fender has stated.
He is among several artists to give his Mercury Prize winnings to worthy causes.
In the band won the award in the mid-90s for their album the album, vocalist Cocker declared that the act would contribute their prize money to the organization the charity.
During 2002, rapper and singer she shared her bounty among multiple organizations, like the NSPCC and a Sickle Cell organization.
"Additionally, I contributed a grand to Highgate Newtown, to their classes, because I practiced gymnastics when I was growing up and they lacked new equipment," Ms Dynamite told a publication.
In recent years, the band gave their funds to the youth organization that developed their band, in addition to other independent music bodies.
And 1994 winners the group contributed their winnings to a multiple sclerosis charity after a close contact was identified with the condition.
"Winning was sufficient," stated artist Heather Small. "The cash was the extra but we didn't require the extra, because we had the cake. So our winning impacted the lives of others."
Last week, the trust announced it had saved two local spots in the South East, by transferring them to community ownership.
The first in Southampton and The Croft in that location were acquired under the public acquisition program, which is supported by Arts Council England and supporters who acquire "ownership units" in the properties.