Corporate sponsors reconsidering financial support for Pride Toronto due to diversity and inclusion controversy
Rewritten Article:
By Brianna Williams, Business Reporter
The annual Pride Toronto festival is grappling with a loss of corporate support, following the withdrawals of two major sponsors and significant reductions from two others. The festival's executive director, Kojo Modeste, shared his concerns about the impact of anti-diversity, equity, and inclusion (DEI) backlash.
Flashing back to earlier this year, Nissan Canada and Adidas chose to sever ties with Pride Toronto, citing varying reasons. In Nissan's case, it was a reassessment of marketing and media strategies. Adidas, on the other hand, opted not to renew its sponsorship for reasons undisclosed.
Modeste addressed the fundraiser shortfall, stating, "We're prepared for our festival, but we know there's going to be a financial gap, and I'm working with the board to address that."
The movement towards retracting DEI efforts first resonated in the United States following an executive order issued by former President Donald Trump. This trend has since extended to several American companies, including Meta, Google, and Walmart. Although this has been going on since January, Pride Toronto has only recently felt the brunt of its influence.
Two key gold sponsors have stepped back from their commitments, resulting in a significant reduction in sponsorship revenue. These sponsors pledge to donate at least $150,000 in cash and in-kind goods. One of these has been The Abnormal Beauty Company, which now finds itself under the umbrella of Esteé Lauder. Despite decreasing their contribution, The Abnormal Beauty Company has still shown support for Pride Toronto, according to Modeste.
Neither Adidas nor The Abnormal Beauty Company has publicly commented on the matter, leaving the reasons behind their decisions uncertain. It remains speculation whether the withdrawals are linked to the anti-DEI movement or other factors.
In addition to The Abnormal Beauty Company, Tim Hortons reduced its contribution to the festival, switching from a gold sponsor to a bronze one. The coffee giant declined to comment on the reduction.
Modeste believes that the wave of anti-DEI sentiments could hinder the ability of Pride events to secure funding, not only in North America but globally. He added that "Canadian values are stronger than this" and that he remains optimistic about the future.
Back in February, Pride Toronto warned of potential reductions in events and stages due to the loss of corporate sponsors. At that time, Modeste refrained from disclosing the identities of the sponsors they were losing.
While the trend of withdrawing sponsorship from Pride events seems primarily driven by financial and strategic factors rather than anti-DEI sentiments, Nissan Canada and others still maintain their commitments to diversity and inclusion in their branding and policies.
Modeste reports that Pride Toronto has secured support from four Toronto-based organizations and two unions but still faces a funding deficit. To help bridge the gap, the festival is introducing a donation program this year.
With contributions from Asma Sahebzada.
Note: Financial constraints, strategic reevaluations, and rising event costs appear to be the primary drivers for companies to withdraw sponsorships from Pride events like Pride Toronto. The impact of anti-DEI sentiments on corporate sponsorship decisions is less clear.
- The Pride Toronto festival, faced with a loss of corporate support, is concerned about the impact of the anti-diversity, equity, and inclusion (DEI) backlash.
- Kojo Modeste, the festival's executive director, is working with the board to address the fundraiser shortfall.
- Nissan Canada and Adidas were two major sponsors that withdrew support from Pride Toronto earlier this year.
- The movement towards retracting DEI efforts has extended from the United States to Canada, impacting Pride Toronto.
- Two gold sponsors reduced their contributions significantly, resulting in a financial gap for the festival.
- The media has yet to uncover the reasons behind the decisions of Adidas and one of the gold sponsors, The Abnormal Beauty Company.
- Tim Hortons also reduced its contribution to the festival, switching from a gold sponsor to a bronze one.
- Modeste believes that anti-DEI sentiments could hinder funding for Pride events, not only in North America, but globally.
- In 2025, Pride Toronto warned of potential reductions in events and stages due to the loss of corporate sponsors.
- To help bridge the funding deficit, Pride Toronto is introducing a donation program this year and has secured support from four Toronto-based organizations and two unions.
