The Salem Fraternity was founded on April 21, 1869, in the Downing Building at 175 Essex Street, Salem, Massachusetts, for the purpose of furnishing young people of both sexes in Salem and its vicinity a place to spend their leisure time, to provide opportunities for self-improvement, to help them obtain employment and suitable housing, to engage in active benevolent work, and to aid young persons and strangers in the city. The organization was incorporated in 1875.

The Salem Fraternity was managed by a "Board of Control" consisting of the president, the treasurer, and the clerk (chosen annually), and fifteen directors (five chosen each year for a term of three years), all elected by the corporators at the annual meeting in October. The detail work was handled by a superintendent (a paid position) appointed by the Board of Control. The first superintendent was Stephen Ives Dugan, who had previously been engaged in Boys' Club work under Reverend Edward Everett Hale. The Fraternity was staffed by volunteers.

Activities offered by the Salem Fraternity included a gymnasium, cobbling, debating, glee club, drawing, stamp saving, and a library. Facilities consisted of a library, amusement room, school, two work rooms and, for a time, a women's room. Although founded originally to provide facilities for both sexes, it eventually became primarily a boys' club.

The Fraternity was established and conducted by means of funding and bequests by friends who saw the value of the work conducted by the Fraternity in the community.

At various times, summer camps for boys were operated at the Prescott homestead, Hampton Fall, New Hampshire; Potato Island, Rowley; and at Hog Island. The success of these camps led to the establishment of a permanent camp at Sawyer's Island, Rowley, and to the purchase of the property in 1905.

A night school was operated by volunteer teachers with subjects including reading, writing, spelling, arithmetic, bookkeeping, Latin, grammar, history, geography, and composition.

During the years 1898 and 1899 the Salem Fraternity occupied the second floor of the Lyceum Building on Church Street. In 1899, the Bank Building at 11 Central Street was purchased.

For 15 years, the Salem Fraternity operated the only free library in Salem until 1899, when the Public Library was established.

In 1906, the national organization, Boys Clubs of America was established. Under the initial charter there were fourteen established youth services organizations from across the nation, including the Salem Fraternity for Boys. In 1990 the word "Girls" was officially added to the name of the National Organization and the Club became the Boys & Girls Club of Greater Salem.