The college traces its origins to 1856 when banker, philanthropist, and communal leader Hyman Gratz and the Hebrew Education Society of Philadelphia (established in 1849 by Rebecca Gratz and Isaac Leeser) joined to establish a trust to create a Hebrew teachers college.

In 1856, Hyman Gratz signed a Deed of Trust to create a college after his death if various heirs died without children.

The trust provided for "the establishment and support of a college for the education of Jews residing in the city and county of Philadelphia”.

[5] In 1897, under the leadership of board president Moses A. Dropsie,[6] Gratz College hired the first three faculty members: Henry M. Speaker (Principal, Jewish Literature), Arthur A. Dembitz (Jewish History), Isaac Husik (Hebrew Language).

[11] Women were inspired to gain training and enrolled in Gratz to become teachers of various aspects of Jewish culture, literature, history and language.

Gratz College is "the only institution in the United States to offer an actual Doctor of Holocaust and Genocide Studies degree, as opposed to a Ph.D. in a related discipline, like history or sociology.

In addition, the local community is offered 'Lunch and Learn', an educational speaker series held monthly.