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Financials
All numbers as of December 31, 2025
At Toronto Foundation we’re committed to leveraging our financial assets for maximum community impact through a socially responsible investment strategy that aligns with our values, while also generating strong returns. This allows us to drive positive change beyond granting. On this page we’re providing updates on the realization of that strategy as well as details on our financial performance for the year. In 2025 we saw a 12.2% net return on our investments. At the bottom of the page, you’ll find our summary financials as well as our financial statements.
We’re equally thrilled by both the financial and social impacts of our impact investing pool. Find more on that, as well as how donors can contribute to the Social Impact Investment Fund, here.
Investing: balancing social responsibility while optimizing returns
RockCreek Canada acts as our Outsourced Chief Investment Officer (OCIO) with the mandate to meet both our return objectives and socially responsible investment goals. With oversight by our investment committee, RockCreek Canada considers factors such as environmental, social & governance (ESG) criteria, equity, diversity and inclusion standards, human rights practices as well as active ownership, impact investing and climate risk management at the time of an investment across the portfolio.
Optimizing returns
We prioritize stable, at market investment returns over the long run, while maintaining the value of capital within acceptable risk parameters. Guided by our investment policy, we target a minimum annual net return of 7% after investment management fees, over a five-to-seven-year market cycle, to cover granting, operations and inflation. As of the end of 2025, the annualized five-year net return was 7.4%.
Putting more of our assets to use for good
As we continue progressing toward our goal of having 70% of our assets responsibly invested, we can already confirm that 100% our portfolio adheres to a clear principle of doing no harm.
42%
(nearly $177M) of the Community Capital Pool (main pool) was invested in socially responsible investment products. This is up from 34.2% from 2024 and totals 43% of our assets when factoring in our social impact investing.
65%
of the portfolio was invested with fund managers that are signatories of the United Nations’ Principles for Responsible Investment or have environmental, social & governance (ESG) policies.
Less than 4%
Our exposure to non-renewable energy and utility companies (a decrease in the total portfolio)*
Less than 1%
Our portfolio’s exposure to alcohol, tobacco and firearms (ATFs)*
*No direct investments in either non-renewable or ATF
Percentage socially responsibly invested
Note that the transition from a traditional portfolio to one invested responsibly typically spans several years. This gradual shift is in part due to certain investments having been locked in for extended periods, so it takes time to divest. Look at our impact continuum to see what we mean by socially responsible investments.
Read our 2025 report on the social impact of our investments and more on our strategy.
Investment returns
Last year marked an impressive period for the global markets, with strong performance across most major asset classes. Reflecting this positive trend, the Foundation's Community Capital Pool delivered a robust 12.2% net return in 2025. At December 31, 2025, the annualized five-year net return was 7.4% and the annualized ten-year net return was 6.1%.
Markets that weathered one shock after another continued to rise during the year. Despite significant shifts in the global trading environment, global equities continued to post gains. The portfolio’s performance underscores the effectiveness of our investment strategy and our dedication to maximizing impact through prudent financial stewardship.
Read a 2025 reflection and 2026 lookahead from Outsourced Chief Investment Officer, RockCreek Canada.
COMMUNITY CAPITAL POOL INVESTMENTS ANNUALIZED TEN-YEAR AND FIVE-YEAR NET RETURNS
as of December 31, 2025
ASSETS UNDER ADMINISTRATION
In 2025, the assets under administration decreased by $308 million to $535.5 million due to the planned exit of the now independent Equality Fund Initiative. However, excluding the Equality Fund Initiative, assets under administration increased by $34.2 million, 7% over 2024. In 2025 we disbursed 14% of our eligible assets, exceeding the 5% disbursement quota required by Canada Revenue Agency.
ASSETS UNDER ADMINISTRATION
As of December 31, 2025
COMMUNITY CAPITAL POOL ASSET MIX
As of December 31, 2025
ASSETS UNDER ADMINISTRATION
As of December 31, 2025
COMMUNITY CAPITAL POOL ASSET MIX
As of December 31, 2025
ASSETS UNDER ADMINISTRATION
As of December 31, 2025
COMMUNITY CAPITAL POOL ASSET MIX
As of December 31, 2025
OUR FUNDS
We are home to 1,004 funds, a 4% rise since 2024. These consist of the following types:
Toronto Foundation’s total fund balances amount to $324.2 million, including an operating fund of $5.5 million. That’s a 7.7% increase over 2024 and does not include the assets we hold for others.
The Foundation’s endowed funds total $145.8 million (an 11.3% increase over 2024) and include $25.6 million in funds currently endowed by the board of directors, as well as $120.2 million in funds designated by donors to be invested, so that returns are available for granting in perpetuity. Our non-endowed restricted funds total $172.8 million.
Our donor advised funds include 57 Vital Toronto Funds named in honour of individuals or corporations who have permanently endowed $10,000 or more, with related grants directed by the board to initiatives and programs that support our mission and vision in Toronto. The board establishes the annual amount to be made available for granting from endowed funds, ensuring compliance with Canada Revenue Agency requirements.
Expand each of the sections below for a report back on the 2025 fiscal year.
More on investing with Toronto Foundation
Investment Policy
Our Investment Policy Statement steers the management and investment strategy of our Community Capital Pool. Both fundholders and other contributors, including other charities, pool their investments with us to benefit from institutional investment management expertise and for maximum returns. This simplified investment policy (effective March 2024) reflects the transition to the Outsourced Chief Investment Officer (OCIO), RockCreek Canada, onboarded in 2021. In the policy you’ll find an updated minimum annualized net return goal from 4.5% to 7% over a five-to-seven-year market cycle. This change reflects the increase in the disbursement quota to 5%, as well as our ambitions to grow our returns on our investments. Note: During 2025 all asset allocations remained within permitted targets and ranges as set out in our Investment Policy Statement.
Find the policy here.
Our Principles, Expertise and Governance
Curious to learn about how we invest our funds and what sets us apart? Watch the videos below to learn more about our investment expertise, governance, beliefs and principles. Each video explores key concepts that help you better understand how we manage investments and what you can expect as a fundholder. Whether you're a new fundholder or seeking a refresher, these resources will equip you with the insights you need.