The original proposal stated that the organization would employ only Jewish artists and staff, consist of one theatre troupe and one opera ensemble of approximately 15 members each, a choir of 12 singers, and a chamber orchestra of 25 musicians.
Hans Hinkel, the newly appointed State Commissioner in the Prussian Ministry of Culture at the time, initially rejected the idea for the organization.
In its early development, the Kulturbund battled with choosing repertoire, facing censorship from the Nazi government as well as differing ideological opinions within the local Jewish community.
Following the Kristallnacht pogroms on November 9/10, 1938, the Kulturbund was allowed to continue its activities; however, the discrimination and persecution of Jews had driven many into impoverishment.
On December 16 Hans Hinkel, State commissioner for Prussian theatre affairs including the Kulturbund, in Goebbels' Reich's Propaganda Ministry, declared in front of Dr. Werner Levie (1903–1945), a Dutchman and therefore one of the few available members – not in hiding or arrested – of Kulturbund's executive board, that until the end of December all the still existing 76 Jewish German publishing companies were to be shut down or sold to so-called Aryan owners.
Levie reached the concession, that Jewish publishers obliged to liquidate their companies, might export their book stocks on their own until April 1939 if the respective purchasers would pay in foreign exchange to the Reichsbank.
[7] The Kulturbund's publishing department bought the remaining book stocks from their old proprietors at a discount of 80% to 95% of the original price and would only pay, once proceeds from sales abroad or to German or Austrian Jews and gentiles of Jewish descent would materialise.
The Kulturbund's performing activities nonetheless were embraced by the Jewish population who previously were barred from all cultural and entertainment events.
On September 11, 1941, the Gestapo ordered the closure of the Kulturbund, but excepted its publishing department, which was to be taken over by the Reichsvereinigung der Juden in Deutschland.