It was created as community development project by Gareth Thomas Betts of the University of Wisconsin–Extension and Jennie Schilz Thompson, director of the Delavan Chamber of Commerce to build on the city's circus history.
The induction process began in 1988, and was headed by Richard Snowberg, the founder and director of Clown Camp during his tenure as a professor at University of Wisconsin-La Crosse.
Balloting by the members of the ICHOF resulted in the election of Red Skelton, Lou Jacobs, Emmett Kelly, Mark Anthony, Felix Adler, and Otto Griebling.
In 2004, ABC News columnist Buck Wolf settled a long-running clown controversy by inducting Pinto Colvig as the original Bozo.
A series of investigative pieces he wrote proved that show business promoter Larry Harmon had a pattern of taking credit for inventing TV's most famous clown.