Established in 1972 as a special legal entity under the auspices of the Ministry of Foreign Affairs, the Japan Foundation is Japan’s first specialist organisation for international cultural exchange. The Japan Foundation became an independent administrative institution on 1 October 2003, and in May 2005 a new organisational structure was adopted with the aim of achieving a more comprehensive and effective development of the Foundation's international cultural exchange programmes.

The Foundation comprises a head office in Tokyo, a branch office in Kyoto and two Japanese-language institutes (Urawa and Kansai). Overseas it has 19 Foundation offices in 18 countries.

The purpose of the Japan Foundation is: 'to contribute to a better international environment, and to the maintenance and development of harmonious foreign relationships with Japan, through deepening other nations’ understanding of Japan, promoting better mutual understanding among nations, encouraging friendship and goodwill among the peoples of the world, and contributing to the world in culture and other fields through the efficient and comprehensive implementation of international cultural exchange activities' (Independent Administrative Institution Japan Foundation Law, Article 3).

The Japan Foundation aims (i) to promote cultural and arts exchange; (ii) to promote overseas Japanese-language education and intellectual exchange; (iii) to promote overseas Japanese studies and intellectual exchange; and (iv) to support the collection and provision of international exchange information and international cultural exchange standard bearers.

The Japan Foundation carries out its programmes and activities in the following three major categories: (i) Arts and Cultural Exchange; (ii) Japanese-Language Education Overseas; and (iii) Japanese Studies Overseas and Intellectual Exchange. In addition, an Information and Resource Centre was established in May 2004 to provide information on and encourage international exchange.

The Japan Foundation is a partner in the Japan Cultural Profile project.