Since its opening in May 1996, the Sakakini functioned as a branch of the Palestinian Ministry of Culture, albeit with programmatic independence. Within a year of its opening, the director of the KSCC initiated consultations assessing the Sakakini's work, which recommended that in order to better fulfill its mission, the KSCC should change its status into a non governmental organization (NGO).

For that purpose, a founding board was convened in July 1997. Among its tasks were the drafting of bylaws and fundraising. In May 1998, the Sakakini obtained its NGO registration from the Palestinian Ministry of the Interior, and a tax-exempt status granted to non-profit organizations from the Ministry of Finance. In August 1998, an agreement was signed with the Ministry of Culture, whereby the Sakakini's building remains the property of the Ministry, while its premises are used rent-free by the new Sakakini-NGO. The Sakakini's general assembly of 50 members, elected in October 1998 and February 1999 the member of the KSCC's administrative and honorary bodies. In June 1999 the Board of Trustees met for the first time.

A general view of the KSCC's first gereral assembly meeting: 10/1998.