Sam Fender has handed over the full amount of his £25k award cash to the Music Venues Trust, which works to save the Britain's independent music venues.
The star was awarded the prize on mid-October as his new release his work was chosen as the outstanding release of the past year.
He has decided to give the cash to the trust, in acknowledgment of the crucial part small stages played in his early career.
"I wouldn't be doing what I am doing today if it wasn't for all the shows I did around the region, and beyond, when I was starting out," stated the artist. "These venues are iconic, but they are in difficulty."
From early 2023 onward, more than 150 of these spaces have ceased operations – about 16 percent of the whole industry in the UK.
Recently, major artists like the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the trust in its attempts to support the industry, by adding a small levy to their ticket costs, which supports local stages.
He also took part, collecting in excess of £100,000 on his live tour to support thirty-eight local spots across Britain.
The money assisted locations that were dealing with imminent closure due to difficulties arising from water damage, blazes and family tragedies, as well as regulatory hurdles, conflicts and sound issues.
Some locations obtained financial assistance in improving facilities and gear that helped performers and audiences.
"The idea that funds from performances in major spaces supports the independent spots, where it begins for musicians like me, is just logical," Sam Fender has stated.
He is among several artists to donate his Mercury Prize winnings to worthy causes.
When they received the trophy in the mid-90s for their release their work, frontman Jarvis Cocker stated that the group would give their prize money to the non-profit War Child.
In 2002, artist Ms Dynamite divided her award among a few organizations, such as the children's charity and a charity for Sickle Cell.
"And I donated a £1,000 to the center, to their gymnastics class, because I practiced gymnastics when I was a child and they required new equipment," the artist shared with outlets.
In recent years, the band donated their funds to the community center that supported their group, as well as other independent music bodies.
And winners that year M People contributed their winnings to a charity for MS after a friend was diagnosed the condition.
"The victory was sufficient," remarked vocalist Heather Small. "The prize was the bonus but we didn't require the bonus, because we had the main prize. So our victory affected somebody else's life."
Last week, the MVT shared it had saved a couple of small stages in the South East, by placing them under local control.
The Joiners in the city and the second in the city were acquired under the public acquisition scheme, which is funded by the arts council and music fans who acquire "shares" in the buildings.