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When the Montana Federation of Negro Women's Clubs first met in Butte on August 3, 1921, at least nine African American women's clubs were active in communities throughout the state. Representatives from seven of the local clubs attended the meeting called by Mary B. Chappell to organize the state federation as an affiliate of the National Association of Colored Women's Clubs, which organized in 1896. The representatives attending the Butte meeting elected Chappell as the state federation's first president. Women living in Kalispell formed Montana's first African American women's group, the Mutual Improvement Club, in August 1913. Three years later in 1916 twelve Helena women met as the Pleasant Hour Club. The Pearl Club formed in Butte in 1918, and two groups, the Phyllis Wheatley Club in Billings and the Dunbar Art and Study Club in Great Falls, organized in 1920. Four local clubs that formed in 1921 prior to the state federation's first meeting were the Bozeman Sweet Pea Study Club organized on January 5, Mary B. Talbert Art Club organized in Helena on January 7, Clover Leaf Club formed in Butte on February 4, and the Anaconda Good Word Literary Club, whose first meeting was in May.

The Montana Federation participated in meetings and activities of the National Association of Colored Women's Clubs and the National Association's Northwest Region with offices in Seattle. In addition to offering social activities for black women, the local clubs and the state federation supported the Claudia Bivens Scholarship Fund to help black high school students attend college, lobbied for civil rights legislation in the state legislature, and worked through a variety of programs to improve racial relations at the state and local level. At its annual meeting in 1948 the Montana Federation voted to change its name to the Montana State Federation of Colored Women's Clubs (MSFCWC).

After World War II membership in the state's local clubs dwindled as the black population in the state dropped. During the 1920s and 1930s as many as fifteen local groups were active in Montana, but by the 1970s only four clubs remained active, and on June 17, 1972, the state federation's executive board voted to disband. Federation assets and monies in the Claudia Bivens Scholarship Fund were given to the University of Montana, Missoula, to provide for a scholarship commemorating the MSFCWC.