A friend of Fred Newman says he died late Sunday night of renal failure that led to cardiac failure.
Newman first entered politics and psychotherapy in the 1970s, branding his philosophy "Friendosexuality."
His Independence Party began in the 1980s as the New Alliance Party.
It went on to help provide the margin of victory for Mayor Michael Bloomberg in 2001.
Newman and his supporters later faced accusations of anti-Semitism and cult-like behavior, but party leaders dismissed those claims.
Newman did not want a memorial service.
He was 76 years old.