Financials

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Financials

In 2021 we proudly established and launched our socially responsible investment strategy. We are committed to investing and growing our assets in pursuit of justice for people and planet. Our objective is to yield social and environmental progress without compromising financial returns. Read below for more on our approach to investing as well as detailed financials from 2021 or see the year’s summary financials here.

INVESTING: Balancing social responsibility and stable returns

In January 2021 we brought on RockCreek (Canada) Advisor, Inc., as our new outsourced investment officer, to drive higher, more socially responsible returns. Monitored by our investment committee, RockCreek is diversifying our portfolio to facilitate more competitive returns while striving to meet our impact goals.

We prioritize stable investment returns over the long run, while maintaining the value of capital within acceptable risk parameters. This approach generates returns that enable fundholder grants and also cover administrative and philanthropic fees.

Targets:

Guided by our investment policy, we target an absolute real net return (after inflation and investment management fees) of an average of 4.5% per annum over a five-year period to cover granting and expenses.
By 2031 we’re aiming to have 70% of the main pool portfolio in socially responsible investments, using a combination of intentional ESG investments and mission-aligned impact investments.
As of the end of 2021, 18% of our total assets are invested in socially responsible investment products and 0.09% of the portfolio is invested in fossil fuels.

Returns

All figures are as of December 31, 2021

Global equity markets are gradually stabilizing in the years after the onset of the pandemic, although inflation and other drivers continue to constrict returns. Investments in the main pool had an annualized net return of 6.8% for the 2021 calendar year and an annualized five-year net return of 5.3% at December 31, 2021.

With RockCreek enlarging our asset classes in 2021 and pursuing more private equity, we’re optimizing our potential for higher returns in the longer term while better aligning our investments with our mission.

Assets

Assets Under Administration

All figures are as of December 31, 2021

Our assets under administration total $780.1 million at December 31, 2021, including the United Way Greater Toronto Fund of $30.5 million that the Foundation administers in trust on its behalf. We experienced growth of $22.7 million or 3% in our assets under administration since December 31, 2020, primarily due to investment returns net of expenses and the contributions to new and existing funds.

In 2021 we disbursed 10% of our eligible assets, exceeding the 3.5% required by Canada Revenue Agency. Due to exceptional federally funded COVID-related granting programs we disbursed 17% in 2020.

Our Funds

All figures are as of December 31, 2021

Our total fund balances amount to $261.7 million, including the operating fund of $4.7 million.

Endowed funds total $105.4 million and include $15.9 million in funds currently endowed by the board of directors as well as $89.5 million in funds designated by donors to be invested, so that returns are available for granting in perpetuity.

Donor advised funds include 47 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.

Our non-endowed restricted funds total $151.5 million.

As of December 31, 2021, we were home to 878 funds, a 6% rise since December 31, 2020. These consist of the following types:

502 endowed funds (permanent and board endowed)
128 term restricted
100 invested flowthrough funds (medium to long term)
147 flowthrough funds (short term) and
the operating fund

Operations

Donations

All figures are as of December 31, 2021

In 2021 Toronto Foundation received $21.5 million in donations coming from newly established funds, contributions to existing funds, and/or donations to our city building initiatives through the Vital Toronto Fund. While donations were significantly lower than what came in over the last two years, the number aligns with the donations received between 2016-2019.

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