In October of 2003 citizens of this community gathered at Texas A&M International University’s to request that the Texas Center Border Economics and enterprise development conduct a feasibility study of the philanthropic interest of this community and surrounding area. During this time, The Tejas Foundation had been established by Stewart Martine, Jim Harrell and Dr. Ray M. Keck and were working with the Synergos Institute of New York City.
The results from the study indicate an overwhelming support for a community foundation and steering committee was formed in January 2004. Members of this committee include Jim Harrell, Stewart Martin, Dr. Ray Keck, Clayton Baum, Tony Trevino, Michael Patrick, Richard Perez, Mario Gonzalez, Nancy De Anda, and Candy Hein.
The Synergos Institute received a challenge grant from the Houston Endowment for community foundations established along the border which included the Rio Grande Valley, Brownsville, Laredo and El Paso’s Women Fund. George Granger of the Houston Endowment met with the steering committee to explain the obligations of the grant. Upon acceptance of the challenge grant by the steering committee, it was decided that Tejas Foundation became the Laredo Area Community Foundation since they had already been working with the Synergos Institute on border issues.
On October 2004, the first meeting of the Laredo Area Community Foundation was held and they conducted election of officers. The foundation became a member of the U.S.- Mexico Border Philanthropy Partnership due to the Challenge Grant and the board worked to established an office and hire staff.  In August 2005, An Executive Director was hired and the office was opened.  In October 2005, a reception was held to celebrate the two inaugural donors to the foundation.