The star has donated the entirety of his £25,000 award prize money to the trust for venues, which operates to save the UK's independent concert spaces.
He was given the award on October 16 as his new release People Watching was named the outstanding release of the past year.
The musician has decided to hand the money over to the MVT, in acknowledgment of the vital role grassroots venues had in his early career.
"As an artist wouldn't be doing my current career if it wasn't for all the performances I played around the area, and further afield, when I was starting out," said the artist. "These venues are legendary, but they are facing challenges."
From early 2023 onward, at least 150 of these venues have ceased operations – roughly 16 percent of the total UK scene.
Over the past year, well-known musicians like Pulp, the group Coldplay, Katy Perry and Sheeran have all backed the MVT in its efforts to keep the scene afloat, by adding a minor surcharge to their ticket costs, which benefits smaller concert halls.
He also joined in, generating in excess of £100,000 on his live tour to support 38 small stages across the UK.
The donation assisted locations that were facing imminent closure due to challenges arising from water damage, fire incidents and personal losses, as well as regulatory hurdles, conflicts and neighbor objections.
Other venues obtained funding support in modernizing infrastructure and gear that positively impacted performers and fans.
"The concept that revenue from concerts in big venues helps the independent spots, where it begins for performers like me, is just sensible," Sam Fender has said.
The musician is among several artists to donate his Mercury Prize funds to charitable organizations.
Back when the band earned the trophy in 1996 for their record Different Class, vocalist Jarvis Cocker declared that the band would donate their prize money to the non-profit the charity.
That year, rapper and singer the artist shared her award across a few charities, like the children's charity and a Sickle Cell organization.
"I also donated a grand to my local community centre, to their classes, because I did gymnastics when I was a child and they needed new equipment," the artist shared with the media.
Two years ago, Ezra Collective gave their prize money to the local youth club that supported their act, as well as other local music groups.
Also 1994 winners M People gave their award to a multiple sclerosis charity after a close contact was diagnosed the disease.
"Receiving the award was ample," said artist Small. "The money was the cherry on top but we could do without the bonus, because we had the cake. So our success impacted another person's life."
Recently, the trust announced it had protected several small stages in the South East, by placing them under public stewardship.
The first in the city and the other in the city were bought under the public acquisition program, which is funded by a national body and enthusiasts who buy "ownership units" in the buildings.