The American Friends of Jamaica was established in 1982 as a 501(c)(3) organization to assist Jamaican charities in the areas of education, healthcare and, human and economic development. American multinational corporations with commercial interests in Jamaica, American winter residents, and members of the diplomatic corps were some of the organization's initial supporters. The non-profit organization's founder was Anne F. Sabo, who directed the AFJ until 2003.

An annual fall charity gala was established as the major fundraising event for the organization. Each spring, the AFJ awards its annual grants. The luncheon awards ceremony is hosted by the United States Ambassador to Jamaica; there, executives of Jamaican charities and members of the AFJ board of directors present organizations with grants that have ranged from $7,000 to $200,000. The most recent ambassador to Jamaica, Her Excellency Ambassador Brenda LaGrange Johnson, followed her predecessors in hosting the annual spring luncheon.

In its second year, the Board elected to pay tribute to men, women, and organizations who help improve the lives of Jamaicans. Several awards were created, and awardees have included political figures, business people, and entertainment personalities.

The AFJ's first chairman, in 1982, was former U.S. Ambassador Lauren Lawrence. Following his death, the Board elected Major Gen. Donald S. Dawson, U.S.A.F., Ret., C. D. (Hon.). He served for 15 years and was elected Chairman Emeritus. Former U.S. Ambassador to Jamaica the Hon. Glen A. Holden succeeded Gen. Dawson and remained AFJ President until 2007. Currently Former Florida Secretary of State and Former US Ambassador to Jamaica, Sue M. Cobb, serves as the AFJ President.

Prior to receiving grants, the Jamaican recipients sign an agreement to report at the end of six months, and at the end of the year, the manner in which funds were used.