Item - 2023.EC3.12

The Economic and Community Development Committee recommends that:  

1. City Council authorize the General Manager, Economic Development and Culture, to create the Cultural Organization Operating Partnership program to provide operating funding to not-for-profit cultural organizations in accordance with the City's Community Grants Policy.

2. City Council authorize the General Manager, Economic Development and Culture, to negotiate, enter into and execute single- and multi-year contribution agreements for not-for-profit cultural organizations funded through the Cultural Organization Operating Partnership program, with funding recipients and grant amounts to be determined annually by the General Manager within the budget allocation for the program, and on such content, terms and conditions deemed necessary by the General Manager and in a form satisfactory to the City Solicitor.

3. City Council direct the General Manager, Economic Development and Culture, to develop strategies to support the long-term sustainability of Toronto's not-for-profit cultural sector, including strategies to support major cultural institutions beyond grants and to increase municipal support to new and emerging cultural organizations, and to include any such strategies as part of a forthcoming Culture Plan for Toronto.

This report seeks authority to create a new operating funding model - to be known as the Cultural Organization Operating Partnership (COOP) program - to provide operating support to not-for-profit cultural organizations, replacing the former Major Cultural Organizations (MCO) and Specialized Collections Museums (SCM) grant programs, which have been discontinued based on direction from City Council.

The City of Toronto, through the Economic Development and Culture (EDC) Division, currently provides annual operating grants to eight organizations who had received ongoing funding through the Major Cultural Organizations and Specialized Collections Museums programs. These organizations vary considerably in terms of mandate, size, and budget, making it challenging to create a single program with common criteria that can apply to each recipient. Under the Cultural Organization Operating Partnership program, Economic Development and Culture staff will develop individual, customized partnership and funding agreements for each recipient with criteria and objectives that reflect the organization's unique role in the cultural ecosystem.

In 2023, Economic Development and Culture proposes to fund each of the eight organizations previously supported through the Major Cultural Organizations and Specialized Collections Museums programs with a one-year agreement under the Cultural Organization Operating Partnership program, with funding levels equal to the organization's 2022 grant. Beginning in 2024, and informed by the development of a new Culture Plan for Toronto, Economic Development and Culture will develop three-year agreements for the Cultural Organization Operating Partnership program, with funding levels to be determined based on advice from a community assessment panel. Economic Development and Culture has consulted with grant recipients about the changes proposed through this report.

The introduction of the Cultural Organization Operating Partnership program is in alignment with Economic Development and Culture's ongoing grant reform efforts, as approved by City Council in February 2023, which aim to ensure that grants are equitable, transparent and in compliance with the City's Community Grants Policy while advancing and supporting Toronto's cultural vibrancy. Cultural Organization Operating Partnership will contribute to greater impact and accountability for City funding, and increase collaboration between the City and individual funding recipients.

At the same time, there continues to be a significant need to increase municipal support to new and emerging cultural organizations, particularly those serving equity-deserving communities and communities outside the downtown core. This report recommends that Economic Development and Culture develop strategies to improve the City's cultural funding models to increase support to such organizations, and improve partnership opportunities and support for major institutions beyond grants, while recognizing the City's current budget limitations. Economic Development and Culture will include such strategies as part of a new Culture Plan for Toronto, which will be submitted to City Council for consideration in early 2024.