IOV was founded in 1979 in Oostrozebeke/Belgium, on the proposal of representatives of 22 nations who participated in the Folk Festival Krems in Austria. The organization is registered in Vienna/Austria (Status of an association under decision no. ISD/1601-BVP/82 of the Security Directorate of Vienna), and the Secretariat General is located now in Andorf, Austria since 2005.

In 1983, IOV was recognized with Status C by UNESCO and was accepted as a member of this UN-organization. In 1990, at its 134th meeting, the UNESCO Executive Board passed a resolution to classify IOV in category B (for information and consultative relations with UNESCO). According to the new UNESCO guidelines, IOV maintains official relations with this organization of the UN since January 1997.

Following the adaptation of UNESCO's Director-General on May 22nd in 1998, the Executive Board of UNESCO decided at its 154th session that IOV is admitted to be in operational relations with UNESCO in the future and can be classified in this category.