TAFFY, the Theater Arts Funds For Youth, was founded in January 2002 in honor of Russell Smith, a longtime advocate for and director of children's theater.  Working alongside Montpelier Theatre Guild Board Member Alyson Lincoln McHugh, the two created the vision that was to become TAFFY.

Russell's well known passion for the arts, particularly theater, inspired him to create TAFFY.  Russell's belief that theater, and the theater arts, provide young people with the opportunity to gain skills and confidence, not just on stage but throughout their lives.

The name TAFFY was chosen by Russell in honor of Helen "Taffy" Larcom, a journalism instructor at Eastern Michigan University in Ypsilanti, MI whose enthusiasm and support for his writing nudged a career change into feature writing, which eventually led to his moving to Vermont in 1974 to purchase the Washington World. After he sold his interest in the World to Gary Hass and Deborah Ingram, Russell stayed in central Vermont and eventually became immersed in community and children's theater.

TAFFY is administered through the Montpelier Theatre Guild and operates by an advisory board, which includes McHugh of Barre Town, Reed Bushey of Berlin, and Mark Billian, Cindy Cykon, John Lincoln and Megan Smith of Montpelier. Its purpose is to act as an incentive for youth interested in gaining skills and confidence in theater arts by providing cash scholarships to reduce the costs of theater camps.