[3] In 1941,[4] a group of San Diego businessmen met in the office of then director of the Fine Arts Gallery in Balboa Park, Reginald Poland.

Invitations were issued to painters interested in preserving the memories of the fast disappearing early landmarks of San Diego County.

In 1942, the San Diego Business Men's Art Club negotiated with the city for studio quarters in the Spanish Village in Balboa Park.

In 1947, there was an increase in activity resulting in many outdoor painting sessions, including one at the Pine Hills ranch of Fred Heilbron, one of the original members.

During 1948, increased interest and enthusiasm was manifested by alternate Saturday painting trips by the membership to various sites in San Diego County.

Most of the members of the San Diego Business Men's Art Club participated in this activity, which greatly increased the public interest in the organization.

The San Diego Business Men's Art Club had grown in activities and public relations to such an extent that a headquarters and gallery were sorely needed.

During World War II, the Fine Arts Society of San Diego was forced to evacuate its galleries in Balboa Park and move, originally to 2324 Pine Street,[6] and then to 2030 Sunset Boulevard, a home which was a gift from Mr. and Mrs. Frank E. Marcy to the Fine Arts Society to use as its wartime temporary headquarters.

During this time, Alfred E. R. Van de Veide, Carlos Verharen, J. Milford Ellison, J. Roland McNary, and Earl Schrack were added to the faculty, while Elsey Taft became curator.

As of November 2015, SDAI also has a secondary 3,000 square foot project space in Westfield Horton Plaza Mall, dedicated to hands-on art-making workshops, experimental performances, rotating exhibitions, and artist studios.

SDAI exhibits artwork by artists mainly living and working in the Southern California/Baja Norte region (Los Angeles to Tijuana).

They hire practicing artists making important contributions to their fields who have also demonstrated a vested interest in the capacity of art to empower young people.