The functions, duties and powers of the Fund shall be as follows;-
(a) To approve the policy, plan and programme related to the operation and management of the Fund,
(b) To approve annual and periodical programme and budget of the Fund and to manage or cause to manage for necessary fund, (c) To prepare poverty alleviation programmes and to mobilize partner
organizations for conducting such programmes (d) To prepare criteria and procedure for providing grant and assistance in order to conduct poverty alleviation programmes and to provide grant and assistance accordingly,
(e) To set poverty indication criteria and indicators for particular place,  region, person, household or community and to conduct poverty alleviation programmes accordingly and to evaluate the outcome,
(f) To carry out or cause to carry out regular follow-up and evaluation of poverty alleviation programme conducted upon taking grant or support from the Fund.
(g) To approve the plan and programmes submitted to the Fund.
(h) To cause to carry out the annual audit of the Fund.
(I) To submit an annual report, on the works that the Fund has performed, to the Nepal Government.
(j) To approve organizational structure of the Fund and to create necessary posts and seats for human resources accordingly.
(k) To perform other necessary works to achieve the objectives of the Fund.