The aims of the League were from the start to establish and nurture cultural and social ties with Icelandic Canadians and it's sister League, the INL of Canada.

INL-Iceland both lived through good times and bad times, but after 1980 it's activities dwindled steadily.

The former INL-Iceland board therefore decided to request that the Foreign Ministry assisted in resurrecting the INL-Iceland. Foreign Minister Halldór Ásgrímsson was positive to the idea of revitalizing the League and decided to appoint an interim board for two years. The agreement between the Foreign Ministry and the interim board was signed on October 9, 1997 the Day of Leifur Eiriksson in the U.S.

The Foreign Ministry of Iceland provides the INL-Iceland with a certain grant, a permanent program director, equipment and office facilities for the running of the service centre of the INL-Iceland.