He studied music at Conservatoire de Paris in the beginning of the last century, but eventually returned home to Sweden to manage a wine shop founded by his father.
When the Swedish state in 1919 monopolized the trade with alcohol, it expropriated the Nydahl wine shop.
The objective of this foundation was to establish an institution, in the manner of the Conservatoire de Paris, serving in education and research.
The institute would collect and maintain an archive of music manuscripts, scores, letters and other music-related material.
Initially the foundation arranged courses and lectures in harmony and solfège, but is now largely concerned with maintaining the Museum and serving the public and musicologists with information, scans, etc.