In April 2000 as part of National Youth Service Day, an AU senior named Kimberly Williams initiated a campus-wide project to build a playground at 6th and Mississippi Avenues Southeast. Beyond providing low-income children a safe place to play, Williams' goal was to develop a lasting relationship between American and this impoverished neighborhood. Through Project Playground, fundraisers were held with the goal of raising about $34,000. In addition to working on the Playground, Williams set up a tutoring program. She wanted to show the community that students were not "...some snooty rich kids who went down there and were like, 'we're' going to give you a playground.'" They received grants and donations, including help from a nonprofit company that builds playgrounds. Companies donated books for children and t-shirts for volunteers.

The construction date was April 15th and President Clinton sent a letter of support. Over 400 volunteers helped out, including AU students and community members. The new playground was built between two schools (Simon Elementary and Hart Middle School) east of the Anacostia River in Anacostia.

The spark for the Endowment was founded with that $12,500 left over from this community service project. Kim Williams delivered the check to the University in December 2000/ January 2001 when she graduated. Subsequently, other students got involved in order to reach the $50,000 required by the University to created an Endowment. Multiple forms of fundraising took place, including the Founders Day Ball in 2002, a fundraiser at the President's house, and large donations from graduating classes. Over $58.000 was raised by the spring of 2002 and the first grants were awarded during the 2002-2003 school year. Money for the students service grants was not taken from the Endowment, but rather from the interest it generated.

Since then, The Eagle Endowment for Public and Community Service has expanded and developed. It has a Student Coordinator and an Eagle Endowment Council who oversee the grant dispursement process, as well as service projects and fundraisers throughout the school year. It is the very first initiative of its kind and is frequently called upon to share its experience with other campuses.