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Stonewall was founded in 1989 by a small group of women and men who had been active in the struggle against Section 28 of the Local Government Act.

Section 28 was an offensive piece of legislation designed to prevent the so-called 'promotion' of homosexuality in schools; as well as stigmatising gay people it also galvanised the gay community.

Stonewall is renowned for its campaigning and lobbying. Some major successes include helping achieve the equalisation of the age of consent, lifting the ban on lesbians and gay men serving in the military, securing legislation allowing same-sex couples to adopt and the repeal of Section 28. More recently Stonewall has helped secure civil partnerships and ensured the recent Equality Act protected lesbians and gay men in terms of goods and services.

Stonewall's Education for All campaign, launched in January 2005, helps tackle homophobia and homophobic bullying in schools and works with a wide coalition of groups.

Stonewall receives no public funding and raises all its money itself in a range of ways including donations, sponsorship, and fundraising events.