Friends of the Underground Railroad was incorporated as a charitable non-profit corporation in New York on October 6, 2004, was granted 501(c)3 tax-exempt status January 7, 2005 by the United States Internal Revenue Service, and adopted by-laws April 29, 2005. Donations to Friends of the Underground Railroad are tax deductible to donors.

During 2005, the Friends board was expanded to include Underground Railroad executives, writers, site owners and other experts from around the nation, and the Friends of the Underground Railroad newsletter, The Lantern, was inaugurated.

In 2006, Friends of the Underground Railroad plans to inaugurate annual prizes recognizing individuals, sites and noteworthy achievements which have particularly furthered the efforts to rekindle the nation's memory of the Underground Railroad and to preserve Underground Railroad history.