Children's Lantern was founded in June 2011 after Tim and Jill Tracy attended a global orphan conference. Inspired by their experiences, Tim initiated the creation of the organization by filing for 501(c)3 status and selecting a board of directors. By the fall of that year, Adam and Alyssa Tracy joined to manage daily operations, with a launch date set for January 1, 2012. In addition to raising awareness, fundraising efforts began to support frontline organizations. Initially based in Defiance, Ohio, Children's Lantern has positively impacted more than six counties in the area and has extended its services to Ethiopia, India, Mexico, Peru, Thailand, and Uganda.

In 2019, Children's Lantern focused on serving Defiance and nearby counties, enhancing its effectiveness in supporting foster, kinship, and adoptive families, aged out foster youth, and human trafficking victims in the community.