Sam Fender has given the entirety of his £25k honor cash to the Music Venues Trust, which functions to protect the UK's independent live music spots.
Fender was awarded the prize on October 16 as his new release his work was declared the top album of the last 12 months.
Fender has decided to give the cash to the Music Venues Trust, in acknowledgment of the vital role small stages had in his early career.
"I personally wouldn't be doing what I am doing today if it wasn't for all the gigs I did around the area, and further afield, when I was starting out," said the artist. "These venues are renowned, but they are facing challenges."
Since the start of 2023, over 150 of these spaces have ceased operations – roughly 16% of the total UK scene.
In the last year, top acts such as Pulp, Coldplay, Katy Perry and Sheeran have all aided the trust in its initiatives to support the industry, by adding a minor surcharge to their admission fees, which benefits local stages.
Fender also took part, raising more than £100,000 on his live tour to support 38 small stages across England, Scotland, and Wales.
The donation assisted venues that were dealing with potential shutdown due to issues caused by water damage, fire incidents and family tragedies, as well as licensing issues, legal disputes and noise complaints.
Some locations received monetary aid in improving facilities and sound and lighting systems that directly benefitted performers and fans.
"The notion that revenue from performances in major spaces backs the local stages, where it begins for musicians like me, is just sensible," the star has said.
Fender is far from the only musician to contribute his Mercury Prize funds to good deeds.
When the band earned the trophy in the mid-90s for their record Different Class, vocalist Cocker stated that the group would contribute their cash to the non-profit War Child.
In 2002, musician the artist shared her award between multiple organizations, like the NSPCC and a Sickle Cell charity.
"I also donated a thousand pounds to the center, to their gymnastics program, because I did gymnastics when I was growing up and they lacked updated gear," Ms Dynamite told the media.
Previously, the band gave their winnings to the local youth club that developed their act, as well as other local music groups.
And the 1994 recipients the group donated their prize to a multiple sclerosis charity after a close contact was diagnosed the condition.
"Winning was sufficient," stated vocalist Heather Small. "The cash was the bonus but we could do without the bonus, because we had the honor. So our winning affected another person's life."
Recently, the Music Venues Trust announced it had rescued several small stages in south-east England, by placing them under public stewardship.
The first in the city and The Croft in Bristol were purchased under the Own Our Venues initiative, which is backed by Arts Council England and enthusiasts who acquire "stakes" in the properties.
