The NLDTF relies on funds from the proceeds of the National Lottery. The Lotteries Act identifies the manner in which NLDTF funding may be allocated. The Minister of Trade and Industry, on the recommendation of the industry experts in the relevant Distributing Agency, makes the policy that guides the allocation of funds to beneficiaries. It is the aim of the NLDTF that the grants made will make a difference to the lives of all South Africans, especially those more vulnerable. The NLDTF is dedicated to improving sustainability of the beneficiary organisations it funds.

The NLDTF currently has in the region of R2 billion a year to distribute to registered non-profit organisations in the fields of charities, arts, culture and national heritage and sport and recreation that meet the advertised qualifying criteria.

The NLDTF places emphasis on areas of greatest need and greatest potential, so that all South Africans can gain from, and contribute to, South Africa's development.