Bhutan is one of the least economically developed countries in the world. However, Bhutan is determined not to compromise its rich natural resources for making immediate economic gains that may lead to disastrous consequences in the future.  Thus the limited and scarce resources of the Government have to meet many pressing diverse demands.

The Cultural Trust Fund is envisioned as a means to help Bhutan preserve and promote its rich cultural heritage and traditions from the pressures of modern development.

The Fund was established during the Kingdom's 76th Session of its National Assembly.  Its Royal Charter was signed by His Majesty, King Jigme Singye Wangchuck, on the tenth day of the fifth month of the Earth Hare year, corresponding to the 23rd of June, 1999.

The Fund aims to build a mimimum capital of US$ 10 Million through contributions and donations from the international community as well as the people and businesses of Bhutan.  The Fund will become operational once its size reaches 
US$ 5 Million.   Only the income which accrues from the capital will be utilized.   Since the Fund is non-profit, contributions are exempt from income tax in Bhutan and the USA (under section 501 [c][4] of the IRS Tax Code).

The overall objective of the Fund is to use its income for the preservation, promotion and incorporation of the cultural heritage of Bhutan in order to ensure the overall sustainability and holistic development of the country.   This overall objective will be implemented through the subsequent actions:

1. Maintain an inventory of cultural properties of historic, archaeological, and artistic importance;

2. Review legislation and put forth suggestions for laws to conserve the cultural heritage of Bhutan;

3. Develop and implement plans for the assessment, restoration and renovations of cultural properties;

4. Introduce new technologies, where possible, to minimize the maintenance of cultural properties;

5. Provide institutional support to both private and public agencies involved in the promotion of cultural activities;

6. Provide training and assistance to craftsmen/craftswomen, writers, painters, musicians, and others engaged in cultural activities;

7. Facilitate research and initiatives by individuals and institutes in the field of culture;

8. Institute grants and awards to distinguished nationals who have served Bhutan in the cultural field;

9. Institute public occasions and competitions for the promotion of individual excellence in the fields of arts and crafts;

10. Support exhibitions which promote the understanding of Bhutanese cultural values.