Sam Fender has donated the full amount of his £25k award cash to the trust for venues, which functions to protect the United Kingdom's grassroots live music spots.
He was presented with the award on October 16 as his third album People Watching was named the top album of the last 12 months.
The musician has decided to hand the money over to the MVT, in recognition of the crucial part local spots had in his beginning days.
"I wouldn't be doing my current career if it wasn't for all the performances I did around the North East, and further afield, when I was starting out," said the artist. "These locations are legendary, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have shut down – approximately 16 percent of the whole industry in the UK.
Over the past year, top acts such as Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its efforts to keep the scene afloat, by including a minor surcharge to their ticket prices, which goes to help independent venues.
He also participated, raising over £100k on his live tour to help numerous grassroots venues across Britain.
The donation helped spaces that were facing possible closure due to issues caused by floods, blazes and bereavements, as well as licensing issues, court cases and noise complaints.
Additional spaces obtained monetary aid in upgrading facilities and technical equipment that helped artists and concertgoers.
"The notion that revenue from performances in big venues supports the smaller venues, where it all starts for performers like me, is just common sense," Fender has said.
The musician is not the first artist to give his Mercury Prize funds to charitable organizations.
In the band won the prize in 1996 for their record Different Class, vocalist Cocker announced that the band would donate their prize money to the non-profit the charity.
During 2002, artist Ms Dynamite divided her bounty between several good causes, including the children's charity and a Sickle Cell charity.
"And I donated a thousand pounds to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was growing up and they lacked new equipment," Ms Dynamite shared with the media.
In recent years, they contributed their funds to the community center that developed their band, as well as other grassroots music organisations.
Also winners that year the group gave their award to a MS organization after a acquaintance was diagnosed the illness.
"Receiving the award was ample," said vocalist Heather Small. "The prize was the bonus but we didn't need the cherry, because we had the cake. So our victory touched somebody else's life."
In the past week, the MVT revealed it had saved two grassroots venues in south-east England, by placing them under community ownership.
The Joiners in that area and The Croft in Bristol were purchased under the Own Our Venues initiative, which is backed by a national body and music fans who buy "stakes" in the buildings.