[1] It was founded in 1995 by artist Níels Hafstein, and Magnhildur Sigurðardóttir,[2] a retired psychiatric nurse.

The museum is run by the co-founders Níels Hafstein, and his partner Magnhildur Sigurðardóttir along with a board.

The collection consists mostly of works by Icelandic artists with notable exceptions of Pieter Holstein and Dieter Roth.

Most of them revolve around research based on the annual exhibition theme or studies of individual artists.

In this way, the museum showcases its collection, while making contributions to the otherwise mostly undocumented history of Icelandic folk and outsider art.