The NFDW was established in 1971[1] as a means of supporting women's voices within the Democratic Party of the United States.

The National Federation of Democratic Women was formed on October 6, 1971, when 27 women gathered at breakfast during the Democratic Women's Leadership Conference at the Capitol Hilton in Washington, D.C. Rilla Moran was elected temporary chair and the group set May 1972, Nashville, Tennessee, as the first annual meeting.

At this convention, the women of the Federation established the Founders Internship for a young woman between the ages of 18 and 25 to work at the Democratic National Committee.

During the period 1972–1977, the Federation gained recognition from the Democratic National Committee as the official women's organization and received a seat on the DNC Executive Committee and three seats on the DNC.

Rilla Moran Woods, C. DeLores Tucker and Caroline Wilkins were instrumental in establishing this official recognition for NFDW through their work on the Charter Commission and the 1976 Democratic National Convention Committee.