The Council awards funds to Alaskan 501(c)(3) nonprofit organizations, schools, government agencies, Alaska Native tribes and individuals. If an organization has not attained tax exempt status they may be eligible for sponsorship by a qualified organization in select grant categories. The applicant organization must demonstrate a close working relationship with the sponsoring organization, and the sponsoring organization must agree to accept financial responsibility.

The Council approves all grants. Some grant applications are reviewed and rated by a panel of Alaskan citizens, artists, and arts patrons in advance of Council final approval. All grants are evaluated in accordance with published criteria.

The Alaska State Council on the Arts operates on the State of Alaska fiscal year, which begins July 1 and ends June 30. All funds must be expended within the fiscal year the grant is awarded. Specific requirements are itemized in the application instructions for each grant.

The Alaska State Council on the Arts and its grant recipients are required to abide by federal regulations which bar discrimination based on race, color, national origin or gender and require accessibility for persons with disabilities. Ethnic and cultural-based organizations are encouraged to apply to all grants programs.

Applicants are required to contact and discuss their proposal with Alaska State Council on the Arts staff prior to submitting an application. Special assistance is available for applicants with disabilities.