The Aguda was founded in Tel Aviv on October 6, 1975 by a group of 11 gay men and one lesbian, including the well-known Israeli LGBT activists Yaakov Pazi, Dan Lachman, and Theo Mainz.

In the same year, Aguda activist Dan Lachman founded the "White Line" (Hebrew: הקו הלבן) telephone crisis hotline.

In 1989 the Aguda began operating a political action program known as Otzma, directed by Marc Tenenbaum, Hadar Namir, and Joyce Sala.

In 1994 the Supreme Court of Israel relied on this law, when it ruled that El Al had illegally discriminated against Danilowitz, and recognized for the first time the rights of a same-sex couple.

[2] The Aguda was also closely involved in various other political achievements for the Israeli LGBT community in the 1990s, including the 1992 establishment of a subcommittee for LGBT issues within the Committee for the Advancement of Women's Status in the Knesset, the 1993 change to the military's policy on enlistment to equalize the enlistment of gay and lesbian soldiers to those of other soldiers in the Israel Defense Forces, and the 1997 addition of degradation based on sexual orientation to the law prohibiting slander.