Catalyst and Transformation Fund: How Toronto supported arts and culture organisations to restructure and recover after the pandemic

The Catalyst and Transformation (CAT) Fund was launched to help Toronto’s arts and culture organisations adapt to the wave of significant change that has swept over the sector since the Covid-19 pandemic. With funding and support needed to reimagine their futures, the programme encourages organisations to take strategic risks, explore new models, and implement meaningful changes that reflect values of sustainability, equity, and community engagement.

Confronting disruption in Toronto’s cultural sector

The Covid-19 pandemic exposed deep structural vulnerabilities across Toronto’s cultural ecosystem. Arts organisations—ranging from artist-run collectives to established institutions—struggled with outdated business models, inequities in access to resources, and the rapid shift toward digital engagement. Financial pressures mounted, audiences changed and demands for equity and inclusion became louder and more urgent. For many, survival required more than recovery; it demanded profound transformation. This was the context in which the City of Toronto, working with the Canadian federal and provincial governments and private philanthropic foundations, launched the Catalyst and Transformation (CAT) Fund. The initiative recognised that Toronto’s cultural infrastructure needed a bold intervention: one that could stabilise organisations in the short term while empowering them to reinvent themselves for a sustainable, inclusive future.

A funding model built for risk and renewal

Unlike many cultural funding streams, the CAT Fund was designed to encourage risk-taking and structural change. Two types of support were offered: exploration grants, which allowed organisations to assess their current state and design new futures, and implementation grants, which provided resources to execute those plans.

Crucially, transformation was not defined solely by growth. For some, the best pathway was downsizing, restructuring, or even closing responsibly. By placing values of sustainability, equity, and collaboration at the centre, the CAT Fund created the space for cultural organisations to rethink their governance, programming, and role in Toronto’s cultural landscape.

To ensure trust, the programme was administered by Work In Culture, a third-party organisation, and applicants were given the option to participate anonymously. This approach addressed a key barrier – organisations’ hesitation to share vulnerabilities with government funders – while fostering openness about the realities of cultural work.

Empowering cultural organisations to lead change

The impact of the CAT Fund has been felt across Toronto’s creative workspaces and community venues. Some organisations restructured leadership to embrace shared governance, while others implemented equity-focused policies that redistributed resources and decision-making power. Community-based groups used the funding to strengthen partnerships and redesign programming for accessibility, deepening their connections with diverse audiences.

Performance institutions and arts venues piloted collaborative leadership models, creating healthier, more sustainable workplaces for cultural workers. In cases where closure was the most viable option, organisations used CAT support to wind down with care – archiving work, developing legacy plans, and supporting staff transitions.

By stabilising organisations and providing the framework for structural change, Toronto’s CAT Fund has redefined how cultural policy can respond to crisis. More than a recovery programme, it has become a model for municipal cultural intervention, showing how targeted, flexible funding can safeguard cultural infrastructure, promote equity, and encourage innovation.