Newby Trust was formed in December, 1937, by a group of business and professional men and women, led by Mr H.N. Smith (then resident in Newby, near Scarborough, in Yorkshire). The founders summarised their charitable purposes as:

the advancement of education, the furtherance of health, and the relief of distress and poverty.

It was incorporated on 1st January, 1938. The Memorandum and Articles of Association were amended in 1941, and the Trust was registered In May 1964.

It is a company limited by guarantee, and as such it has eighteen members, who elect six rotating trustees. There are sub-committees to oversee the administration of the three general areas of interest. The general administration is carried out by one part-time secretary, and there are no other employees. Its overheads are thus kept to a minimum in order that almost all the income may be directed to charitable purposes. The Company meets twice a year, the Trustees at least twice, and sometimes more frequently.

Since its foundation the Trust has by and large worked within the guidelines set out by its founders, and the most recent definition of its purposes may be found in the Charity Commissioners' guidebook as being 'to promote all or any purposes which now are or hereafter may be deemed by law to be charitable and in particular the advancement of education, the furtherance of health and the relief of poverty, distress and sickness.'

It has, however, over time, attempted to target areas within the general remit in order to maximise the efficacy of its limited resources. Thus it does not normally make donations to persons or enterprises likely to attract public funding, nor does it offer financial support to charities much larger than itself. It never supports primary or secondary education, nor does it accept applications relating to projects or work outside of the United Kingdom.

Latterly, it has defined one category of special interest each fiscal year, for which Registered Charities are invited to apply. Unsolicited applications will not be considered.