The first Donnelly Threshing Bee was held in 1965 at the Oscar and Ruth Aanerud farm near Donnelly.  It has been held at this same site ever since.  Oscar Moe served as Chairperson.  The proceeds went to the West Central Lutheran Homes.  There were four threshing rigs, one of which was owned by Fred Gerber and Albin Kling of Donnelly, and another owned by Charles Simpson of Herman and R.E. Durkee of Hoffman.  This event, sponsored by the West Central Lutheran Homes, was held for two years.

In 1968 the Donnelly Commercial Club, which later became the Donnelly Community Club, took over the project and started the Annual Jubilee and Threshing Bee as we know it today.  Over the years there have been horse shows, horse pulls, tractor pulls, Miss Donnelly and Little Miss Donnelly contests and parades. 

In the 1970’s, the school house from District 7, Rendsville Township, and the Donnelly Depot were relocated on the grounds.