The Guild began with an invitation circulated in January 1981 to attend the first organizational meeting for a new Iowa City area quilters' group named "Quilting for Fun. Intended to be "an informal group of people of all ages and interests" ranging from "absolute beginners to the more advanced quilters and even to quilting instructors," the organizers saw it as a "place to meet new friends, to learn or pass along new techniques, or just to get out for the evening." Twenty-one individuals joined as members in the first month. A year later in February 1982 their ranks had more than doubled to 46 members.

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Some twelve years later, in October 1993, Guild members voted to change the name of the organization to "Old Capitol Quilters Guild." Evidently a possible change had been discussed for some time and arose again as the group began planning their first show (scheduled to be held in June 1995). At the time of the name change in 1993, the Guild had more than 100 members.