A registered UK charity, the Great Britain Sasakawa Foundation was established after Ryoichi Sasakawa met a number of senior British figures, including then Prime Minister Margaret Thatcher, in London in 1983, to discuss the international situation and, in particular, UK-Japanese relations. They concluded that it was in the interests of both countries that greater efforts should be made to enhance mutual appreciation and understanding, with an emphasis on providing British people with more opportunities to discover Japan and giving Japanese people better opportunities to learn about the United Kingdom. It was agreed that a non-governmental, non-profit making body should be established for this purpose. The Foundation was inaugurated in May 1985, in parallel with similar initiatives in Scandinavia, France and the United States, following a donation of almost £10 million from the Sasakawa Foundation (now called The Nippon Foundation), founded in 1962. The Trustees are drawn from distinguished individuals in the UK and Japan.

The Foundation's aim is to develop good relations between the United Kingdom and Japan by advancing the education of the people of both nations in each other's culture, society and achievements. It seeks to promote mutual understanding and cooperation through financial support for activities in the following fields: Youth exchanges, Schools and education, Japanese language, Arts and culture, Humanities and social sciences, Science and technology, Medicine and health, Environment and Sport. The Foundation's awards are intended to provide 'pump-priming' and not core funding of projects, but even small grants have enabled a wide range of projects to reach fruition, such as: Visits between the UK and Japan by academics, professionals, creative artists, teachers, young people, journalists and representatives of civic and non-governmental organisations; Research and collaborative studies, seminars, workshops, lectures and publications in academic and specialist fields; Teaching and development of Japanese language and cultural studies in schools, Further Education colleges and universities; and Exhibitions, performances and creative productions by artists, musicians, film-makers, writers and theatre groups.

The Great Britain Sasakawa Foundation is a major sponsor of the Japan Cultural Profile.