Sam Fender has handed over the entirety of his £25,000 award cash to the trust for venues, which operates to protect the UK's independent live music spots.
Fender was given the award on 16 October as his latest record his work was declared the outstanding release of the past year.
He has decided to give the cash to the trust, in recognition of the crucial part small stages had in his beginning days.
"I personally wouldn't be doing my current career if it wasn't for all the performances I did around the area, and further afield, when I was starting out," stated Sam Fender. "These venues are renowned, but they are in difficulty."
Beginning in 2023, more than 150 of these venues have permanently closed – roughly 16% of the total UK scene.
Recently, top acts including Pulp, Coldplay, Katy Perry and Sheeran have all supported the trust in its initiatives to keep the scene afloat, by adding a minor surcharge to their ticket costs, which benefits local stages.
Sam Fender also participated, collecting over £100k on his recent tour to assist numerous small stages across England, Scotland, and Wales.
These funds supported spaces that were dealing with potential shutdown due to difficulties stemming from flooding, fires and bereavements, as well as regulatory hurdles, conflicts and noise complaints.
Other venues received monetary aid in upgrading infrastructure and technical equipment that positively impacted artists and concertgoers.
"The notion that revenue from concerts in major spaces supports the independent spots, where it begins for musicians like me, is just logical," Fender has stated.
He is not the first artist to give his Mercury Prize funds to charitable organizations.
When the band received the prize in the mid-90s for their album their work, lead singer Jarvis Cocker declared that the act would give their prize money to the organization the charity.
During 2002, rapper and singer Ms Dynamite divided her award across multiple good causes, such as the NSPCC and a Sickle Cell organization.
"Additionally, I contributed a grand to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was a child and they needed new equipment," Ms Dynamite shared with a publication.
Previously, they gave their winnings to the youth organization that supported their act, as well as other grassroots music organisations.
Also winners that year they contributed their prize to a charity for MS after a friend was diagnosed the condition.
"Receiving the award was quite enough," stated vocalist Small. "The money was the bonus but we didn't need the bonus, because we had the honor. So our winning impacted somebody else's life."
Recently, the Music Venues Trust shared it had rescued a couple of grassroots venues in south-east England, by transferring them to public stewardship.
One venue in the city and the other in the city were bought under the Own Our Venues scheme, which is supported by Arts Council England and enthusiasts who acquire "ownership units" in the buildings.