Sam Fender has given the entirety of his £25k award cash to the Music Venues Trust, which operates to protect the Britain's independent concert spaces.
He was given the cheque on 16 October as his new release his work was chosen as the top album of the previous year.
Fender has chosen to give the cash to the trust, in appreciation of the crucial part small stages had in his early career.
"I wouldn't be doing my current career if it hadn't been for all the shows I performed around the North East, and further afield, when I was beginning," stated Fender. "These locations are legendary, but they are in difficulty."
Beginning in 2023, over 150 of these venues have permanently closed – about one-sixth of the total UK scene.
Recently, well-known musicians including the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to support the industry, by applying a modest fee to their ticket prices, which supports smaller concert halls.
Sam Fender also took part, raising more than £100,000 on his 2024 arena tour to help numerous grassroots venues across England, Scotland, and Wales.
The donation supported locations that were facing potential shutdown due to challenges stemming from flooding, fire incidents and bereavements, as well as permit problems, court cases and noise complaints.
Other venues received monetary aid in modernizing amenities and technical equipment that helped artists and concertgoers.
"The notion that money from shows in major spaces supports the local stages, where it all starts for artists like me, is just logical," Sam Fender has said.
Fender is among several artists to contribute his Mercury Prize prize money to good deeds.
Back when Pulp earned the trophy in 1996 for their release the album, vocalist the singer declared that the group would give their prize money to the non-profit War Child.
That year, rapper and singer Ms Dynamite divided her prize across multiple charities, such as the NSPCC and a Sickle Cell charity.
"Additionally, I contributed a thousand pounds to the center, to their gymnastics class, because I did gymnastics when I was a child and they required new equipment," the artist explained to outlets.
In recent years, Ezra Collective gave their winnings to the local youth club that nurtured their band, in addition to other local music groups.
Also the 1994 recipients M People gave their winnings to a MS organization after a close contact was diagnosed the disease.
"Winning was quite enough," remarked vocalist Heather Small. "The money was the extra but we didn't require the cherry, because we had the cake. So our success impacted another person's life."
In the past week, the MVT revealed it had rescued two local spots in that region, by placing them under public stewardship.
One venue in the city and the second in that location were bought under the community ownership scheme, which is supported by a national body and music fans who acquire "shares" in the properties.