The Society of Alumni, as it was known throughout the 19th and early 20th century, was organized and founded by the alumni of Indiana University in 1854 after a blaze destroyed First College Building in April of that year. President William Mitchell Daily called for a gathering of IU graduates in response to the fire so that the still-young institution could regain its bearings. The purpose of the organization was to pursue and preserve the interests of the university.

As the number of Indiana University alumni grew, it became necessary to further develop the organization of the Society of Alumni in order to adequately address alumni concerns and support IU. In 1913, the Alumni Council was established with 21 members to serve as an advisory board for the University. Its duties, as described in the constitution, consisted of considering and carrying out all of the programs of work that concern the graduates of IU in their relations among themselves and to their alma mater, make a yearly report to the regular annual meeting of the Association, and elect members/officers of the Council. The Alumni Council was branched into Executive, Finance, and Projects committees. In the 1930s, the Council reorganized and went from 21 to nine members and was renamed the Executive Council.

The Executive Council still meets annually. The meetings are usually a two or three day affair, consisting of workshops, presentations, and discussions. The topics covered are usually that of membership in the Alumni Association, fundraising for scholarships, research on the current interests of the university (such as the current demographics, student interests, enrollment statistics, etc.), career programs, and other means of attracting more alumni to the organization or improving the school for the future. Each year, the current president of Indiana University provides a report to the Executive Council that outlines what major changes have occurred or need to occur at the university.

Within the Executive Council is the Board of Managers. The Board of Managers is the supervisory body of the IU Alumni Association. It establishes and oversees the policies of the association and meets two to four times a year. The board is composed of 14 volunteer leaders, including the CEO of the IUAA, the immediate past chair of the association, five officers, six at-large members, and a student representative. At-large members serve staggered three-year terms, while the officers are elected annually. The student representative is appointed annually.