In the year 2000, a handful of U.S, Army veterans joined together to develop plans for establishing a foundation to assist the needy sons and daughters of soldiers and Army veterans in achieving their dreams of higher education. It was the vision of these Army veterans that the Foundation would grow and be able to benefit an ever increasing number of deserving children of soldiers.
The Foundation was incorporated in the State of Texas on March 9, 2001 as the Paladin Foundation. The Internal Revenue Service recognized the Foundation as a 501(c)(3) non-profit organization in 2001, making all donations to the Foundation fully tax deductible to the extent allowed by federal law.
In 2006, the IRS awarded permanent tax exempt status to the Foundation. The Board of Directors voted to change the name of the Foundation from the Paladin Foundation to the Army Scholarship Foundation. In order to recognize the sacrifices of the spouses of serving enlisted soldiers, the Board opened eligibility for scholarships to such spouses as well.