On October 15, 1885, Professor James Hamilton Howe, Dean of the Music School at DePauw University, invited seven young women from the school to attend a meeting for the purpose of forming a society. These young women were personally well-known to him and he hoped this organization would be similar to the literary societies already existing on campus. Dean Howe had noticed a sense of dissatisfaction and unrest among his female students, which he surmised was due to a lack of social opportunities on campus.

The seven women chosen to attend this meeting were Anna Allen, Olive Burnett, Bertha Deniston, Amy DuBois, Nellie Gamble, Bessie Grooms and Estelle Leonard. Although they favored the Dean's idea in principle, they had difficulty in reaching a satisfactory agreement, for they felt that such a general organization would not give them the close companionship they needed and desired.

While they were debating the course to pursue, a welcome suggestion came from their friend and associate, James D. Campbell (an undergraduate member of Beta Theta Pi, who acted as librarian for the School of Music). From him came the idea to form a fraternity, since such a group would benefit the students themselves, the university and the musical arts.

Rumors of a new ladies' fraternity spread throughout the campus, but the group chose to be fully organized before making its first public appearance. A constitution and bylaws were drafted, the fraternity's name, colors, flower and motto were chosen, the first eight pledges were selected, and their badge was designed before Alpha Chi Omega was introduced to the DePauw University student body at a convocation held in Meharry Hall. On October 23, 1885, Alpha Chi Omega's Founders and their pledges, adorned with scarlet and olive green ribbons, made their presence known.

Membership was limited to students in the School of Music in the beginning, but within a few months this requirement was changed to include liberal arts students, provided they were registered in some course in music. Today, the music course requirement no longer exists.