Item - 2026.EC28.2

The General Manager, Economic Development and Culture recommends that:

1. City Council authorize the General Manager, Economic Development and Culture, to establish the Heritage Organization Operating Partnership program to provide operating funding to not-for-profit heritage organizations in accordance with the City of Toronto's Community Grants Policy and the City of Toronto Heritage Organization Operating Partnership Program Guidelines as outlined in Attachment 4 to this report from the General Manager, Economic Development and Culture, with implementation commencing in 2026.

2. City Council authorize the General Manager, Economic Development and Culture, to negotiate and execute single- and multi-year contribution agreements for not-for-profit heritage organizations funded through the Heritage 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 terms satisfactory to the General Manager, Economic Development and Culture, and in a form satisfactory to the City Solicitor.

3. City Council direct the General Manager, Economic Development and Culture, to establish the Museums and Heritage Sector Development Program to fund heritage activities across Toronto, substantially in accordance with the City of Toronto's Community Grant Policy and the City of Toronto Museums and Heritage Grant Program Guidelines as outlined in Attachment 5 to this report from the General Manager, Economic Development and Culture, with implementation commencing in Q4 2026.

4. City Council authorize the General Manager, Economic Development and Culture, to negotiate and execute single- and multi-year contribution agreements for not-for-profit heritage organizations funded through the Museums and Heritage Sector Development 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 terms  satisfactory to the General Manager, Economic Development and Culture, and in a form satisfactory to the City Solicitor.

5. City Council authorize the General Manager, Economic Development and Culture, to negotiate and execute one-time and multi-year agreements with not-for-profit organizations funded through the Cultural Hotspot program and Youth Cultural Incubators Stabilization Initiative program, with funding recipients and grant amounts to be determined annually by the General Manager, Economic Development and Culture, within the budget allocation for the program, and on such terms satisfactory to the General Manager, Economic Development and Culture, and in a form satisfactory to the City Solicitor.

The City of Toronto has a long-standing commitment to strengthening the city’s cultural vibrancy and economic prosperity through Economic Development and Culture (EDC) grant programs, directed grants, and event sponsorships. These investments are aligned with City priorities and support programs, projects, operational needs, and events that foster collaboration and innovation across Toronto’s cultural sector and the broader economy. In accordance with City Council direction, this staff report provides an overview of EDC’s annual grant-making activities, including a list of all grant recipients.

This report also presents the final phase of the Economic Development and Culture (EDC) multi-year grant reform, which started in 2018 to make all EDC funding opportunities more transparent, equitable, and aligned with the 2019 City of Toronto Community Grants Policy. This final phase includes the establishment of the Heritage Organization Operating Partnership and the Museums and Heritage Microgrant Programs, which will enable museums and heritage spaces to serve as accessible hubs for storytelling, learning, and civic engagement. Through these programs, the City will demonstrate equity, access, and transparency in museums and heritage funding, strengthening inclusive participation, supporting diverse cultural expression, and reinforcing Toronto’s cultural infrastructure. No new funding is being requested, and the program will leverage funds currently provided as directed grants, already accounted for within EDC’s existing operating budget allocation.

The completion of EDC's grant reform is an important step to advancing the Council-approved strategies outlined in the Division's two guiding strategic plans: Sidewalks to Skylines: An Action Plan for Toronto’s Economy and Culture Connects: An Action Plan for Culture in Toronto.

There are no current year financial implications resulting from the adoption of the recommendations contained in this report. The Museums and Heritage Funding Program will be funded through $100,000 in reallocation within EDC, with no net new financial impacts

Any future year financial impacts arising from the recommendations in this report will be accommodated within the Operating Budget of the Economic Development and Culture Division.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.