Sam Fender has handed over the full amount of his £25k award winnings to the trust for venues, which operates to preserve the Britain's independent live music spots.
He was presented with the prize on 16 October as his new release the album was declared the top album of the past year.
Fender has decided to give the cash to the MVT, in acknowledgment of the essential function grassroots venues had in his early career.
"As an artist couldn't be pursuing my current career if it weren't for all the performances I did around the region, and further afield, when I was beginning," remarked Fender. "These venues are renowned, but they are in difficulty."
Since the start of 2023, more than 150 of these venues have permanently closed – approximately 16 percent of the entire UK sector.
Recently, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to keep the scene afloat, by including a modest fee to their admission fees, which supports local stages.
Sam Fender also joined in, generating more than £100,000 on his live tour to support 38 local spots across Britain.
The donation supported venues that were dealing with potential shutdown due to difficulties stemming from water damage, fire incidents and family tragedies, as well as licensing issues, court cases and sound issues.
Additional spaces obtained funding support in upgrading infrastructure and gear that helped performers and concertgoers.
"The idea that money from concerts in large arenas supports the local stages, where it all starts for performers like me, is just sensible," Sam Fender has said.
The musician is far from the only musician to give his Mercury Prize prize money to charitable organizations.
In Pulp earned the trophy in the mid-90s for their record Different Class, lead singer Jarvis Cocker announced that the group would contribute their prize money to the non-profit the charity.
In 2002, artist she split her award between several good causes, such as the NSPCC and a Sickle Cell organization.
"Additionally, I donated a £1,000 to the center, to their gymnastics program, because I practiced gymnastics when I was younger and they required new equipment," she shared with a publication.
In recent years, they gave their winnings to the community center that supported their band, alongside other local music groups.
Also 1994 winners M People donated their prize to a multiple sclerosis charity after a acquaintance was found to have the condition.
"Winning was ample," said artist Heather Small. "The money was the bonus but we didn't need the bonus, because we had the main prize. So our victory affected somebody else's life."
In the past week, the MVT shared it had rescued several local spots in the South East, by bringing them into community ownership.
The Joiners in Southampton and the other in Bristol were bought under the public acquisition initiative, which is backed by a national body and supporters who buy "shares" in the properties.