Harnessing Philanthropy for Public Good

Airlea emphasizes the role of philanthropy as a tool to complement municipal efforts in closing service gaps. She advocates for tax incentives that encourage foundations to increase their disbursement quotas beyond the current 3.5-5%, with larger foundations contributing at higher rates. This strategy could free up millions of dollars to support initiatives that municipal funding cannot fully cover. By aligning philanthropy with public needs, she envisions a more comprehensive and sustainable support system for Toronto’s communities. 

To maximize philanthropic impact in Toronto: 
 

• Implement Scaled Disbursement Quotas – Use a scaled disbursement model, requiring larger foundations to allocate a higher percentage of their assets annually. By increasing the minimum disbursement beyond 5% for high-capacity foundations, more funding could be directed to communities in need. 

• Establish Philanthropic-Municipal Partnerships – Facilitate direct collaborations between philanthropic organizations and the City of Toronto to co-fund projects in affordable housing, mental health, and youth programs, similar to the Toronto Foundation’s partnerships with city-led initiatives.

• Launch Community Grant Programs – Develop microgrant programs that empower resident-led projects, ensuring philanthropic funding supports grassroots efforts and neighbourhood-driven solutions rather than being concentrated in large institutions.

• Ensure Transparency & Accountability in Investments – Require foundations to publicly disclose not only their disbursement rates but also their investment portfolios. Many private foundations invest in industries that contradict their stated missions, such as fossil fuels while funding climate initiatives or real estate speculation while supporting housing programs. Increased transparency would prevent investments that actively undermine the causes these foundations claim to support.