The foundation began in 1986, shortly after David received a phone call from his mother Eleanor asking him if he would visit a family from his hometown of Victoria whose young daughter was at UCLA Medical Centre waiting for a liver transplant. The little girl was in the intensive care unit and David was overwhelmed when he saw her and spoke to her parents. Her one wish was to be able to see her sister who was at home in Victoria. David paid for the flight and the look in the little girl's eyes when she saw her sister has never left his memory.

After speaking with her mother, he realized that while the medical costs were looked after by the provincial health care system, the non-medical expenses were left to the family. It was then that he decided to form the David Foster Foundation, so that the financial stress of non-medical expenses could be reduced.

Since 1986, the David Foster Foundation has assisted over 700 families with children in need of major organ transplants and provided millions of dollars in direct family support. In 2006, the foundation became a national organization, expanding to help families across Canada.