The Nordic Volcanological Institute was established in 1974. The basic idea behind the proposal was to strengthen the already well established earth science community in the Nordic countries by jointly exploiting the research opportunities evident in the active volcanism and tectonics of Iceland. The institute is a non-profit organization, with a Board of Directors appointed by the governments of the respective Nordic countries. Day to day administration is in the hands of a director who is selected by the Board of Directors.
Additional funding comes from national and international science funding organisations.
In addition to a permanent scientific and technical staff the institute has 5 positions for young visiting scientists from the Nordic countries. These positions are given for a period of one year with a possible renewal of contract for additional two years. Candidates for these positions are graduate students working towards a Ph. D. degree or postdoctoral fellows. Some 70 Nordic scientists have held these rotating positions.