The Institute was founded in 1992 as the Institute for Renewing Community Leadership under the aegis of the Minnesota Council of Foundations.

James P. Shannon, then head of the General Mills Foundation and a leader in philanthropy and education, chaired the original board. Ronnie Brooks was the first Executive Director working with the program until 2017.

In 2002, the program became part of the Amherst H. Wilder Foundation. At the same time, it was renamed the James P. Shannon Leadership Institute in recognition of Jim Shannon’s life, values, principled career, and commitment to community service.

Since its inception, the program has served over 1300 participants from Minnesota and all across the United States, and had two additional directors, Paul Robinson (2008 – 2014) and Damon Shoholm (2014 – 2020).

In 2021, the Institute became an independent, 501(c)3- nonprofit organization continuing its commitment to the development and support of ethical and effective community leaders.

In 2023, the Shannon Institute welcomed Brandon Jones as Interim Executive Director, serving the program until July of 2024.