The Council funded all the major areas of the arts, seeking to maintain balance between the many diverse communities of Scotland. In addition, it funded cultural groups and events affiliated with immigrant communities and minorities in Scotland. It sponsored two book awards:
The Scottish Arts Council Children's Book of the Year Award (worth £10,000).
The council was pivotal in forming policy for the nation in regard to Arts, Culture and Education after devolution, resulting in the seminal publication Arts Education: A Lifelong Learning Strategy. Published in 2004, this document articulated a national strategy to be put in place 2004–2009. It was crafted through "a year of rigorous discussion, thinking, drafting and re-drafting, and has been much informed by consultation with the wider world of education and the arts."[1]