The Icelandic Literature Fund (Bókmenntasjóður) was founded in the mid-year 2007 and takes over the roles of The Fund for the Promotion of Icelandic Literature, The Icelandic Cultural Fund, and the Icelandic Translation Fund, all of which have been discontinued.
The role of the Icelandic Literature Fund is to fortify Icelandic literature and publishing.
The Icelandic Literature Fund will subsidize the publication of works written in Icelandic as well as translations into Icelandic. It will also contribute to the promotion of Icelandic literature at home and abroad and participate in other projects within its terms of reference.