The Scottish Arts Council exists to support and develop the arts in Scotland. An Executive Non-Departmental Public Body (NDPB) which receives annual funding from the Scottish Executive, it is one of the main channels for government funding for the arts in Scotland. It also distributes National Lottery funds received from the Department for Culture, Media and Sport (DCMS). As a non-departmental public body, it operates at arm's length from, but is accountable to, the Scottish Executive. It is governed by a Board, the Chair of which is appointed by the Scottish Executive.

The vision of the Scottish Arts Council is of a confident, cultured Scotland where everyone takes part in the arts. Its mission is to serve the people of Scotland by fostering arts of the highest quality through investment, research and advocacy. It believes the arts to be the foundation of a confident and cultured society. They challenge and inspire us. They bring beauty, excitement and happiness into our lives. They help us to express our identity as individuals, as communities and as a nation.

Following a comprehensive national cultural review in 2004-5 and publication of a Scottish Executive cultural policy document entitled Scotland's Culture in 2006, major changes to Scotland's cultural infrastructure have been proposed in a Draft Culture (Scotland) Bill - including the amalgamation of the Scottish Arts Council with Scottish Screen to form a single new body known as Creative Scotland. A new joint board will guide arts strategy in the months leading to the establishment of Creative Scotland. It will be chaired by Richard Holloway and comprise members of the Scottish Arts Council and Scottish Screen.

The Scottish Arts Council’s Corporate Plan 2007-2009 outlines its vision, aims, priorities and plans for the arts in Scotland. In it, the Scottish Arts Council acknowledges the radical changes proposed in Scotland's Culture and the draft Culture (Scotland) Bill, published in December 2006. The plan outlines the Scottish Arts Council's proposals to enable an effective transition to Creative Scotland in 2008 or 2009, and the results of its own wide-ranging Strategic Review in 2005/06.

The Scottish Arts Council Corporate Plan identifies aims and priorities for 2007-2009. Aims for 2007-2009 are: Aim 1: to support artists and arts organisations in Scotland to fulfil their creative and business potential; Aim 2: to increase participation in the arts; and Aim 3: to place the arts, culture and creativity at the heart of learning.

Priorities for 2007-2009 are: (i) Increasing the scope and quality of our support to artists; (ii) Securing the foundation of Scotland’s artistic development; (iii) Creating flexibility to support the new and the innovative; (iv) Creating opportunities for participation in the arts; (v) Building a culture of co-operation with partners and the arts community; and (vi) Making the transition to Creative Scotland.

The Scottish Arts Council offers a unique national perspective on the arts and their audiences. Its strategic leadership is underpinned by specialist knowledge and experience in the management and delivery of the arts at national and international level. It aims to forge productive relationships and constructive dialogue at all levels between itself and its stakeholders in the arts, national and local government, education, health and community renewal. Effective links with the private sector will strengthen the bonds between arts and business, and help it to develop further Scotland’s creative industries. Working in partnership with others, it will respond to the needs of the arts and their audiences.

The Scottish Arts Council's new Quality Framework will underpin its plans and help it to realise the vision. It is designed to drive up standards, and foster excellence. Designed as a self-assessment tool, it will encourage innovation and creativity in the organisations it funds and ensure that it responds to the needs and aspirations of audiences and participants.

The Scottish Arts Council’s budget for 2007/08 is £59.9 million which includes £44 million from the Scottish Executive, £15 million from the National Lottery and £1.2 million from other income and reserves. It will invest £55 million in funding arts activity and the remaining £4.9 million will underpin its arts development services and operational costs.

The Scottish Arts Council works closely with the British Council Scotland in the delivery of services to artists and arts organisations in the area of international arts.