Charles Grawemeyer was an active Presbyterian and a man who took the study of religious ideas seriously. In fact, he took university religion courses during his retirement, making his inclusion of an award for religion only natural.

Dr. John Mulder, former president of the Louisville Presbyterian Theological Seminary, recounted the day in 1984 when Grawemeyer invited him to lunch, and simply said: "John, you know the music award won't be the only one. I'd like to create a prize in education, world order and religion. I want the seminary to be part of the religion award."

The Grawemeyer Foundation, the University of Louisville and the Louisville Presbyterian Theological Seminary promptly began to shape the prize. Natural hurdles arose, and many questions surfaced. "What is an award in religion about?" "Is it simply Christian faith, or does it include other traditions from peoples around the world?" Even more contentious: "Should the work be more 'popular' and less 'academic'?" "Should it be inspirational or should it promote questioning or honor revisionary proposals?"

These and other issues were resolved and guidelines were set, including a provision that the selection committee would include at least one person of non-Christian faith and someone from outside North America or with extensive experience outside North America.

The first award was presented in 1990 to E.P. Sanders for his provocative book, Jesus and Judaism, a painstaking look at Jesus' relationship with his Jewish contemporaries.