Incorporated in 1942 as a nonprofit charitable and educational corporation by a virtual "Who's Who" of textile industry leaders. The Foundation is governed by an independent board of 16 directors that works closely with the Dean of the College to seek individual, corporate, and foundation gifts to enhance the resources and educational mission of the College.

Early leaders including W.J. "Nick" Carter, president of Carter Fabrics Corporation; David Clark, president of Clark Publishing Company; Herman Cone, president of Cone Mills; and J. Spencer Love, president of Burlington Mills. These businessmen realized that salaries at the College of Textiles were not competitive with those of industry and therefore, qualified people could not be persuaded to teach.

Other textile executives soon joined the effort and the foundation was incorporated in December 1942 as a nonprofit organization without capital stock. Its initial goal was to raise $500,000 to provide supplements to the teaching salaries allotted by the state and help recruit a new dean of the college. By 1945 the foundation had raised over $700,000 and by July 1948, the foundation had raised $1 million. One of the special gifts was $25,000 from Burlington Mills for a new Textiles library; another contribution from W.J. Carter to help furnish a student lounge; and a $15,000 gift from the Stuart Cramer family funded a sandwich shop that became the famous Shuttle Inn on campus.

To date, the Foundation has funded almost $20 million for faculty and staff development, innovative scholarship programs, faculty and student recruitment and other unique programs that enable the College to educate outstanding young graduates to meet the needs of a rapidly changing, highly technical industry.