The Foundation focuses its grant funding in the areas of the arts, education, historic preservation, and community enhancement.

New Ulm Area Foundation began in 1987 as a community affiliate of the Saint Paul & Minnesota Foundation.  In 2019, the IRS granted 501(c)(3) status to New Ulm Area Foundation, Inc., and in 2020 the Board of Directors established an investment policy and selected a local investment manager.  All funds and new contributions are managed locally.

The Foundation consists of four named funds:  The Somsen Fund, the Macklin Fund, the Nuvera Fund and the Dr. James & Jane Seifert Fund. In addition, the Foundation holds the Charlotte Raymond Anderson Teaching Scholarship Fund, and a general scholarship, operations and general endowment fund.