In the early 1990s, discussion among historical organizations, civic groups and elected officials concerning the destiny of Dallas' landmark courthouse led to the formation of the Old Red Task Force by the Dallas County Commissioners Court in 1994. In 1995, the Task Force asked Spectrum Consulting of Chicago to analyze the feasibility of a museum on the second floor of the 1890 Romanesque building. Shortly thereafter, the Task Force recommended the establishment of a non-profit corporation, Old Red Foundation, to create the museum and manage the use of the renovated building for public and civic events. A board of seven directors, appointed by the Greater Dallas Chamber, the Central Dallas Association, the Dallas Citizens Council, and the Dallas County Commissioners, leads the Foundation.

The Foundation determined the feasibility of a capital campaign to support a new Museum of Dallas History, and consulted with museum designers regarding potential approaches to history telling. Following the renovation of the Grand Hallway, the Dallas Convention and Visitors Bureau opened a Tourist Information Center in 1998, welcoming thousands of visitors weekly ever since. On January 1, 2001, the Foundation retained professional staff for the campaign, the museum development, and the management of the landmark. Since then, more than $6-million in gifts and pledges have been raised, a story-line (the intellectual content of the museum) has been defined, and nationally renowned museum designers have been retained.

Currently the board is chaired by Mr. David Biegler and includes Mrs. Lindalyn Adams, Mr. Raymond Basye, Mr. Jim Erwin, Mr. Boone Powell, Jr., Ms. Judith Garrett Segura and Dr. Charles Tandy.