Pride Toronto loses 3 corporate sponsors in move it connects to attack on DEI programs in U.S.

CBC

27-02-2025

Pride Toronto says three large corporate sponsors have pulled their funding from the festival this year in a move it says is connected to a backlash against diversity, equity and inclusion (DEI) programs in the U.S.
Kojo Modeste, executive director of Pride Toronto, said on Wednesday that the non-profit organization was given a range of reasons by the three companies for their decisions to end sponsorship. It was told in the last couple of weeks that the companies have either experienced a "shift in mandate" or they do not have the financial resources to continue to support the annual event.
"Every time we lose a sponsor, there is less money that is directed to the festival. And so, it will definitely have an impact on us being able to deliver on the festival," Modeste said.
"If I say I am surprised, I will be telling a lie because we have been there in the past. But I'm very disappointed because so much work has been done to get us where we are, in understanding and doing diversity, equity and inclusion work. And knowing that one or group of individuals can just cancel that, it really saddens my heart."
All three companies that withdrew their corporate sponsorship do business on both sides of the Canada-U.S. border. Modeste did not name the sponsors because Pride Toronto hopes to do business with them in the future, but said two can be described as "gold" sponsors, meaning they provide $150,000 in cash or in goods, and one as "silver," meaning it provides $100,000.
Both Rogers and Air Canada confirmed to CBC Toronto that they are sponsoring the event.
Modeste believes the loss of support is connected to an executive order issued by U.S. President Donald Trump in January that ordered an end to all DEI programs, mandates, policies, programs, preferences and activities in the U.S. government. Modeste said companies may be removing themselves from public support of LGBTQ organizations because they fear losing U.S. government support.
"It does connect to some of the policies under the new administration in the U.S.," Modeste said.
"I think it is fair to say that, as a result of some of the executive orders that the President of the United States has put out and some of the language used, that organizations are removing themselves for whatever reason from supporting DEI, which include supporting the 2LGBTQ+ community," Modeste said.
Organization to cancel stage and signature event
Modeste said the loss of the three sponsors means the organization will have to cancel one main stage and one signature event as well as seek other sources of funding.
It will not set up the south stage, which is usually located close to Dundas Street East and Church Street, and will not hold its annual Beach Party, a ticketed event that is usually held at Cherry Beach for up to 1,000 people.
"We will continue to work with our community and to make sure that they are fully aware of any changes that are coming, but this, by no means, means that Pride will be cancelled because we will not allow that to happen," Modeste said. "The parade will continue. Our dyke march will continue. Our trans rally will continue."
Tom Hooper, an assistant professor in the department of human rights and equity studies at York University, said Modeste has worked hard to bring financial transparency to Pride Toronto, especially when it comes to sponsorships.
It doesn't make sense that corporate sponsors, which have supported the organization in some cases for many years, would remove that sponsorship now other than political developments in the U.S., Hooper said.
"There's no reason why any sponsor would withdraw from Pride Toronto at this stage but for this attack on diversity, equity and inclusion," Hooper said.
Chance to return to festival's roots: professor
Hooper said the loss, however, represents an opportunity for the organization because it could go back to its roots.
"I think it's an important lesson for us, for our communities, that maybe we should never have relied on these corporate and government sponsorships in the first place. And maybe a downsizing of Pride and a returning of Pride back to its community, back to its roots wouldn't be such a bad thing.
"We're going to need Pride Toronto and organizations like it to fight back against anti-trans sentiment and attacks on our communities, attacks on our rights. And so, a return to our community roots to me seems like the right way to go here," Hooper said.
Aida Sijamic Wahid, a professor at the Rotman School of Management at the University of Toronto, said it's important to remember that sponsorship is seen by companies as something that generates publicity.
"Companies usually sponsor events because they want their name associated or presented. It gives them the opportunity to market themselves as being socially friendly and in support of certain causes," Wahid said.
"It may be that they simply do not want their name attached to an event that could be construed as something that's in support of the DEI policies more broadly. And so, just to avoid the spotlight, they have pulled out."
Wahid said Pride Toronto may not be the only Canadian organization to be affected by the DEI backlash engineered by Trump.
"If companies generally stop believing that this is a cause that they would like to associate themselves with, then we could see similar behaviour from companies that decide not to put their names on any social events that are associated with diversity in any form or shape," Wahid added.
"I hope that there are still enough sponsors that are willing to support Pride. And perhaps this is an opportunity for companies that truly believe that diversity, equity, inclusion matters to step up and say we're going to pick up the tab."