With Museums Act No. 141/2011 The Museum Council was given the role of discussing the recognition of museums and the withdrawal of recognition before proposals are sent to the Minister of Culture, Innovation and Higher Education. In addition, the Museum Council shall set conditions regarding housing, security, accessibility, registration systems and professional work that museums must meet in order to receive recognition from the Museum Council. Recognition by the Museum Council is a prerequisite for museums to be able to apply for operating grants from the Museum Fund. All recognized museums can apply for grants for defined projects. Other museums, museum guides, centers and exhibitions can benefit from grants from the Museum Fund for defined projects in collaboration with recognized museums. The recognized museum shall be the main applicant and responsible party for the project. Central museums and other museums run by the state may participate in such projects. The Museum Fund may provide grants for international projects in which recognized museums are participants. Only recognized museums may become responsible museums.
The aim of the recognition is to strengthen the activities of museums in preserving Iceland's cultural and natural heritage, ensuring that it is passed on unspoiled to future generations, providing people with access to it, and promoting increased knowledge of this heritage and understanding of its connection to the outside world.
The Museum Council shall supervise the activities of accredited museums, and if a museum does not meet the requirements for accreditation, the Museum Council may submit a proposal to the Minister for the withdrawal of accreditation.