It was originally founded as the California Institute of Transpersonal Psychology by Robert Frager and James Fadiman in 1975.

[5][6] The founders, Robert Frager and James Fadiman, wanted to offer the perspectives of transpersonal psychology alongside personal, therapeutic and spiritual disciplines, all within a community context.

[9] During the same year, William G. Braud and Rosemarie Anderson joined the core faculty at the institution.

[14][15] Other academic profiles that were connected to the institute include Kari Hennigan, who conducted studies in ecopsychology,[16] and Fred Luskin, who was professor of clinical psychology.

Academic programs were structured according to three main orientations: By this time, the institution was associated with the concept of spiritual psychology in the mainstream press.