Sam Fender has handed over the full amount of his twenty-five thousand pound honor cash to the Music Venues Trust, which works to preserve the UK's small live music spots.
He was awarded the prize on 16 October as his latest record People Watching was chosen as the outstanding release of the past year.
Fender has decided to hand the money over to the MVT, in recognition of the vital role grassroots venues had in his initial steps.
"I personally would not have achieved this success if it weren't for all the gigs I did around the region, and further afield, when I was beginning," remarked Sam Fender. "These venues are legendary, but they are struggling."
Since the start of 2023, at least 150 of these spaces have shut down – roughly one-sixth of the whole industry in the UK.
Recently, well-known musicians including the band Pulp, Coldplay, Katy Perry and Sheeran have all aided the trust in its attempts to support the industry, by applying a minor surcharge to their ticket prices, which supports local stages.
He also participated, raising in excess of £100,000 on his live tour to assist numerous local spots across the UK.
The money assisted locations that were confronting imminent closure due to challenges caused by flooding, fires and personal losses, as well as regulatory hurdles, legal disputes and sound issues.
Other venues received funding support in upgrading facilities and sound and lighting systems that helped performers and audiences.
"The concept that revenue from shows in major spaces supports the smaller venues, where it kicks off for musicians like me, is just sensible," Fender has stated.
The musician is far from the only musician to contribute his Mercury Prize funds to good deeds.
In they received the award in the year 1996 for their record their work, lead singer Jarvis Cocker stated that the group would contribute their cash to the non-profit War Child.
During 2002, rapper and singer she shared her prize between several good causes, such as the NSPCC and a charity for Sickle Cell.
"I also gave a grand to the center, to their gymnastics program, because I did gymnastics when I was younger and they needed better apparatus," Ms Dynamite told a publication.
Previously, Ezra Collective donated their funds to the community center that supported their band, alongside other local music groups.
And 1994 winners the group donated their prize to a MS organization after a close contact was found to have the disease.
"Receiving the award was quite enough," said singer the singer. "The cash was the cherry on top but we didn't require the cherry, because we had the cake. So our victory impacted another person's life."
Recently, the MVT shared it had rescued several small stages in the South East, by transferring them to community ownership.
The first in Southampton and the other in Bristol were bought under the public acquisition scheme, which is supported by Arts Council England and enthusiasts who acquire "shares" in the venues.