The Indiana Literacy Foundation (ILF) was established in February of 1993, in Indianapolis, Indiana, where it initially operated in a space at the Indiana State Library. The institutional mission and goals remained steadfast throughout the twelve years the organization and its board members worked to provide funds for voluntary literacy programs throughout the state of Indiana: to "increase societal support for life-long learning," to "make life-long learning accessible to all," and to "increase awareness of opportunities made available by reading." In January 25, 2005, after several years of financial difficulties stemming from its reliance on outside grants for operating funds and awards, the organization's board members voted to dissolve the ILF.

Throughout the years, the ILF supported many volunteer literacy programs, from small operations at local libraries throughout the state, to programs targeting adult or Hispanic audiences at public libraries, career centers, community centers, businesses, and schools. Beyond its grant-making activities, the ILF directly administered a number of community programs and outreach initiatives. The most significant of these was Read, Indiana, a program spearheaded by chairwoman Susan Bayh, then First Lady of the state of Indiana. Read Indiana provided literacy training services and materials, entitled Gateway, Paths to Adult Learning (developed in 1992 by Phillip Morris, Inc.) to communities, neighborhoods, and organizations. The ILF played an active role in marketing the need for adult and functional literacy through a wide array of public awareness campaigns, including a Literacy HelpLine, book give-aways, "Drive to Read" outdoor advertising and radio promotions, public service announcements on local networks, a license plate program, the Learning Works conference, and Spectrum Awards recognizing achievements in the field of literacy. They organized major fundraising events, among them luncheons with the Indiana Pacers, the Links to Literacy golf outings, and awards dinners.

The ILF was a small organization consisting primarily of board members and a few staff. Board members were grouped into a number of standing committees, including the Executive Committee, designed to determine and prioritize organizational issues; the Audit Committee, which monitored the organization's business practices; the Nominating Committee, instituted to consider new potential board members and awardees, and the Finance Committee, which conducted cost/benefit analyses of fundraising and worked to increase revenue. Over the years, long-term board members and/or executive directors included, among others: Carlie Anderson, Mike Barnes, Jean Bepko, Ed Caster, Bill Christopher, Mark Clark, Lis Daily, Gael Deppert, Ray Ewick, Keith Gambrel, Monte Gerard, Donna Gildea, Teresa Helming, Pat Moss, Judy McKillip, Angeline Protogere, Patti Siemantel, Carson Soule, Sue Ulrey, Susan Brock Williams, and Gordon Wishard.