Created by Dr. Metz in 1948, the foundation's original mission was to help medical students. Dr. Metz had a keen interest in young people. His own struggle to pay his way through Indiana University and Rush Medical College made him aware of the need for student scholarships and loan funds. At first, he undertook a loan program for medical students at Northwestern University, where he served on the Medical School faculty. In 1955, Dr. Metz established a scholarship at Indiana University to be awarded to an outstanding senior man and, in 1963, this was enlarged to provide for selection of an outstanding senior coed as well. Two Arthur R. Metz Activity Scholarships have been awarded each year since then.

At his specific request, the directors of the Foundation further endowed the scholarship fund at Indiana University upon his death in 1963, increasing many-fold the number of students benefited by his generosity.

In 1948...I incorporated the Arthur R. Metz Foundation, and this corporation has among its objectives the financial assistance of worthy medical students, scholarships to other university students, contributions to charitable and educational institutions and programs, and the like....As a graduate and alumnus of Indiana University, I have had an increasing personal interest in its programs over the past several years.
—Letter from Dr. Metz to IU, January 15, 1960

Current contributions to IU from the Metz Foundation include funds to the Department of Theatre and Drama, the Arthur R. Metz Distinguished Scholarships, the Wells Scholars Program professorship endowment, the Arthur R. Metz Medical Scholarship, and the Arthur R. Metz Carillon.

In 1953, Dr. Metz was a recipient of Indiana University's Distinguished Alumni Service Award. The following year, he helped organize an association composed of winners of this award and, as first president of the association (1954-63), he called it to special accountability in promoting the interests of the University. His ready and productive acceptance of the national chairmanship of the Annual Giving Campaign in 1956 set an example of sacrificial service and a pattern of dynamic drive which were vital in the onward progress of the Annual Giving Campaign. From 1960 until his death, Dr. Metz served on the Board of Directors of the Indiana University Foundation.

In 1971, the board of the Metz Foundation, wishing to commemorate the notable contribution of service and substance that Dr. Metz had made to Indiana University, decided to present a carillon to the university. Unlike most forms of memorial, a carillon can be enjoyed by everyone in the campus community, and it also seemed a fitting tribute, since one of Dr. Metz's varied interests was music.