How to Save Canada’s Arts Organizations
The past year has laid bare a harsh reality: Canada’s cultural institutions are facing serious economic challenges. Rents have soared, forcing local venues to relocate—including Calgary’s century-old Grand Theatre and Toronto’s Phoenix Concert Theatre, which has hosted artists like Bob Dylan and Billie Eilish. Festivals aren’t safe, either. Hot Docs, North America’s largest documentary festival, put its flagship Toronto cinema up for sale to fund future events, and Just For Laughs, one of the world’s biggest comedy festivals, cancelled all of its 2024 shows as its Montreal parent company tried to avoid bankruptcy.
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Canadian arts organizations do not have deep reserves. Most are non-profits that rely on a mix of government grants, private donations and earned revenue to stay afloat. When the pandemic struck, that revenue disappeared overnight; audiences still haven’t fully returned. Operating costs have risen by as much as 41 per cent since 2019, due in part to wage hikes, while corporate sponsorships shrink and public funding flags. (Government funding to the Canada Council for the Arts decreased by $3.63 million last year, and will be reduced by $7.33 million in 2025.) Artists are struggling as well. More than 70 per cent juggle multiple jobs to make ends meet. Unless we do something, 2025 will mark a turning point for Canada’s cultural scene—and not for the better.
I oversee two organizations: the Toronto Arts Council, which provides public funding to artists and arts organizations, and the Toronto Arts Foundation, which encourages private support for the arts. It’s my job to convey how precarious conditions have become while, at the same time, highlighting the energy and creativity that still pulses through the sector. I remain optimistic but, if current trends continue unchecked, we could see a wave of closures among arts organizations across Canada this coming year—theatres, festivals, galleries, the very spaces that bring communities together, offer solace and provoke thought. We’ll see talented artists leave the field for more stable jobs. The ripple effects are not just social, but also economic: the arts contribute about $60 billion to Canada’s GDP every year.
If there’s one thing I know about the arts, it’s that its people are nothing if not resourceful. Soulpepper in Toronto, for example, is more than a professional theatre—it now serves as a community hub that offers activities like movie nights and corporate workshops. In Calgary, Decidedly Jazz Danceworks provides dance classes to people with Parkinson’s disease. Major institutions—like the Art Gallery of Ontario, the National Arts Centre and the Vancouver Symphony Orchestra—all pivoted to online events during the pandemic. Now their digital offerings are a mainstay, expanding their reach well beyond their traditional audiences. These are all promising developments that require continued investment, both in money and time.
The path forward is clear. First, Canada needs to take the arts seriously as an industry, one that deserves the same resources as other sectors. Governments, at all levels, must step up with increased funding to match rising costs and capitalize on new opportunities. Consider South Korea: the country’s cultural budget grew from roughly 4.9 trillion won in 2015 to 6.9 trillion won in 2024. In 2022 alone, it collected US$13.2 billion from cultural exports—a direct return on its increased investment in the arts. One exciting homegrown initiative is the City of Toronto’s new 10-year “Culture Connects” action plan, which will boost the Toronto Arts Council’s base budget by $2 million annually over the next five years.
The private sector also has a role to play. In this realm, we’ve seen increased investment by companies not traditionally involved in the arts, like tech firms, some of which now offer cultural sponsorships. Public-private partnerships are yet another solution. In Ontario, Section 37 was an effective incentive that required developers to allocate part of their condo development budgets to public art. (Unfortunately, the government scrapped it a few years ago.) Other incentives, like the federal tax credit of up to 33 per cent for charitable donations, also foster support for the arts among donors and sponsors. They must be strengthened.
Of course, communities are at the heart of the arts. It’s crucial that Canadians show up—to attend events and advocate for the value of culture in our everyday lives. If we don’t, we’ll lose more than just performances and exhibitions; we’ll lose a part of our identity. The arts are how we share our stories and find common ground in a world that often feels more divided by the day. In 2025, let’s not allow all that beauty to slip away.
Kelly Langgard is the Director and CEO of the Toronto Arts Foundation and Toronto Arts Council
