The legends about how the name came about: On one of the BGP Acid Jazz compilations the sleeve notes referred to Gilles Peterson jokingly giving James Taylor a cassette of Funk Inc. and Charlie Earland Grooves labelled simply "Acid Jazz" in order to inspire him.

Highly regarded in soul-jazz circles, organ combo Funk, Inc. has specialized in a very accessible, groove-oriented blend of jazz, funk and R&B. The group was founded in Indianapolis in 1969 by organist Bobby Watley, who recruited tenor saxman Eugene Barr, guitarist Steve Weakley, drummer Jimmy Munford and conga player Cecil Hunt.

In the early 1970s, the original lineup came to the attention of Bob Porter, a well respected producer who signed Funk, Inc. to Prestige and paved the way for the band to record five albums for that label. After stressing improvisation on its first three albums Funk, Inc., Chicken Lickin' and Hangin' Out, Funk, Inc. started to lose its way in the mid-1970s and turned to heavier production, more arranging and background vocals. This slicker approach led to tension within the group, and Funk, Inc. broke up in 1976.