As one of 24 County arts agencies established by the Maryland State Arts Council, the Allegany Arts Council receives annually more than one-third of its operating budget through the County Arts Development program. This funding provides operational and programmatic support to the organization, allowing it to meet its strategic objectives.
As a Community Arts Development funding recipient, County arts agencies are expected to serve as funders in their own communities, supporting a broad range of creative endeavors. Annually, the Arts Council provides a portion of its funding to Arts in Education initiatives, and operates two grant funding programs.

Creative Placemaking projects help transform communities into beautiful and resilient places with the arts at their core. Creative placemaking projects are intended to enhance the quality of life for community residents, encourage artistic community development, and create a sense of place. Individuals, arts- based organizations, artists or collaborators may apply.