Holualoa Foundation for Arts and Culture was established in 1994 by a diverse group of individuals who shared a vision to develop and expand opportunities in the community to enrich lives through art and culture. Upon receiving its 501 c3 status and with an operating budget of $700, the foundation began offering classes and workshops for adults and children. Programs were held at various locations in the community while the Foundation searched for a home. Finally, in 2001, due to a generous offer from a local family, the Foundation was able to purchase the Donkey Mill, a building steeped in the history of the Kona coffee industry. With respect for its history and architecture, volunteers put in countless hours of work renovating the old coffee mill. Infused with new life, it opened in the fall of 2002 as the Donkey Mill Art Center.

As the Foundation grew, it brought new programs to the community, implementing an "Artist in Residence" program and adding studios for ceramics and printmaking. Its gallery has provided a venue for faculty and children exhibitions, has hosted the Renwick Alliance for the Smithsonian Institute, and featured music and dance performances and a range of art and cultural events.

In 2005, with the help of a benefactor from the community, the Foundation was able to purchase 1.2 acres immediately south of the Mill, creating new opportunities to expand its mission and vision.

While honoring the Donkey Mill's cultural heritage and the ideals of the Founders, and adapting to the needs of a developing community, Holualoa Foundation for Arts and Culture has moved into a new era of growth. In 2007 the Foundation held its First Annual Art Auction, generated an operating budget of over $400,000, hired an Executive Director, and initiated a Capital Project that details plans for expanding programs and facilities with the goal of establishing a regional art center.