Major Bill Hendricks, USMCR, was inspired by his wife Diane when she tried to donate a homemade Raggedy Ann doll to a needy child but could not find any organization to do so.

Hendricks used his position as director of Public Relations for Warner Brothers Studio to enlist celebrity support, as well as have Walt Disney and his animators design the red toy train logo.

[4][2][5] A theme song for the program was written in 1956 by Sammy Fain and Paul Francis Webster, and would be recorded by Nat King Cole, Jo Stafford, Peggy Lee, among others.

They have a Literacy Program dedicated towards providing age-appropriate books to children in low-income neighborhoods to break the cycle of poverty.

The stated goal is to "deliver, through a new toy at Christmas, a message of hope to less fortunate youngsters that will assist them in becoming responsible, productive, and patriotic citizens."