The foundation produces award programmes that provide recognition and money prizes to New Zealand artists working in across all art forms.

[1][2] The concept of setting up an organisation to raise private funding for the arts was initiated by Creative New Zealand in 1997.

Seed funding of $5m was secured from The Lottery Grants Board payable over five years and the foundation was launched in 2000.

The award is presented every two years to a children's book illustrator with published work of a high standard and includes a cash gift of $15,000.

The recipient is gifted the pin in perpetuity, while the medallion is presented to a successor at a future Icon Award ceremony following the artist's death.

In time, the foundation hopes that an oral history will be deposited with the Alexander Turnbull Library in Wellington covering the life of each Icon artist.

In October 2020, multiple allegations of historical sexual abuse were made against composer Jack Body, who had received the award in 2015 shortly before his death, by a number of his former students.

[16] In January 2022, following a formal apology by the university to these students, the Arts Foundation confirmed that his award was no longer recognised by the organisation.

The criteria has changed away from the terminology of 'best' which is subjective in the arts, instead focusing on the significance of work and the impact on New Zealand.

[22]Laureates are able to use their award in any way they choose, for example, in the creation of new works, or the freedom to concentrate time and resources into the development of their career.

Teacher, critic, theorist and organiser of contemporary creative practices, Jon Bywater (Auckland) curated the award in 2006, while writer, teacher, painter, curator Gregory O'Brien (Wellington) undertook the role in 2008 and arts radio journalist Lynn Freeman in 2010.

This consists of NZ$15,000 and mentoring from one of the alumni of Arts Foundation Laureates, Icons, New Generation, residency or Fellowship recipients.

To date two awards have been made: The inaugural recipient was the University of Otago in recognition of its contribution to the arts community through its Burns, Hodgkins and Mozart Fellowships.

The three Fellowships were set up through the generosity of anonymous benefactors and have subsequently been funded by additional grants to maintain their value.

The inaugural recipient selected and announced by Marti Friedlander, was Edith Amituanai – a widely exhibited artist and a finalist in a number of awards, including the 2008 Walters Prize.

On 26 June 2008, the Harriet Friedlander Scholarship Trust and the Arts Foundation launched a new international residency.