The NSW Aboriginal Regional Arts Fund is for projects in remote and regional NSW that encourage Aboriginal people to explore and express their cultural identities.

Young Society of Artists spokeswoman Heather Ruhl said they do hold indigenous art exhibitions and would look to apply for a grant.

"We would look to apply if an artist brought a project to us we'd look at working with them to apply for a grant," she said.

"We would be willing to work with indigenous artists who bring a project forward but currently we are and try to be self-funded with our arts programs.

"We definitely think there is room for indigenous art in Young, we do have the 'painting in circles' exhibition coming up in March with Enid Clarke, so we would like to encourage more exhibitions for sure."

Member for Cootamundra Katrina Hodgkinson said all Aboriginal artists and arts organisations should apply for this funding.

"The funding will allow them to share their stories and skills with their communities," she said.

"This funding opportunity will help to build the skills, capacity and professional development of Aboriginal artists and arts organisations as well as create a diversity of stories and contemporary artworks which speak to local communities."

Ms Hodgkinson said The NSW Aboriginal Regional Arts Fund offers up to $5,000 for individual professional artists and up to $20,000 for organisations.

"The Fund supports projects that enable Aboriginal communities in regional NSW to explore and express their cultural identities," she said.

"It also supports projects that engage and promotes regional Aboriginal artists, arts and culture in NSW and it encourages people to engage with Aboriginal arts and cultures. The NSW Government want to build the capacity and sustainability of Aboriginal arts organisations in regional NSW."