The Film Institute was founded in 1963 by the Swedish state and the various professional bodies of the film industry. It is a foundation with the mission to support the production of new films, the distribution and screening of worthwhile films, to preserve and promote Sweden's film heritage and to represent Swedish film at an international level which is defined in the annual government decision and in the Film Funding Regulation.

The Film Institute is managed by a board made up of nine members appointed by the government. The board in turn appoints the CEO, who is responsible for the day-to-day operations of the Film Institute. The organization is divided into five departments: Film Funding, Film and Society, Film Heritage, Communications & PR and Administration.