All In or Falling Out: The Sponsorship Story of Pride Toronto 2025
Pride Toronto is 44 years old—and she has always been rooted in controversy. Toronto’s Pride Week was born as a direct response to the city’s infamous bathhouse raids in February 1981, when over 150 police stormed venues across Toronto, making 286 arrests. Those raids ignited mass protests, rallies, and ultimately the city’s first Gay Freedom Rally that March. What started as an act of defiance has since evolved into the 7–10 day festival we know today, and ultimately into a month-long celebration officially recognized by the City of Toronto.
Pride Toronto.
BUILDING PRIDE TORONTO
So how does a festival born in protest and resistance find itself at the table with corporate sponsors and government allies? Pride Toronto managed to do it by offering three powerful levers:
Access to cultural relevance
Access to Audience
Driver of economic impact.
Beyond its roots in activism, Pride Toronto has grown into a cultural institution—one that celebrates, honours, and amplifies a community that shapes the social and cultural fabric of Toronto.
A decade ago, Pride Toronto drew close to 2 million visitors and generated more than $700 million in economic impact. Fast forward to last year: according to the City of Toronto, the festival attracted nearly 3 million visitors, generating $475 million in economic impact and $194 million in tax revenue. With those numbers, it’s no surprise that sponsors lined up to be part of the festivities. Reports suggest that Pride Toronto brought in $5 million in sponsorship revenue in 2024 alone.
Of course, that success comes with tension. As corporate partnerships deepened, criticism also grew. Some voices argued that Pride Toronto had become too commercialized—prioritizing sponsors while sidelining the very communities and issues that gave birth to the movement.
Crest toothpaste activation at Pride Toronto.
CRASHING PRIDE TORONTO
After years of steady corporate support and record attendance, Pride Toronto entered 2025 expecting business as usual. But this year unfolded differently. On his first day in office, U.S. President Trump signed an executive order dismantling federal diversity, equity, and inclusion (DEI) policies—terminating grants and contracts for companies with DEI programming. Within weeks, U.S. tech giants like Meta, Amazon, and Google scrapped their DEI initiatives. Canadian companies soon followed, with names like Shopify and Molson Coors scaling back their commitments.
The ripple effects were immediate. As early as February, two major sponsors quietly pulled their support, creating a $300,000 shortfall, according to Pride’s Executive Director, Kojo Sherwin Modeste. At the time, Modeste declined to name the companies, still holding out hope of salvaging those relationships.
By June, the picture was clearer, albeit bleaker. Sponsors began dropping with their wallets, if not always their presence. Among those scaling back financial contributions:
Nissan
Home Depot
Clorox
The collective shortfall climbed to $900,000.
Google emphasized that its employees would still march in the June 29 parade. Nissan Canada and Clorox both issued statements affirming their support for diversity and inclusion. Home Depot Canada, in contrast, said only that it “continually reviews” its nonprofit giving, and had decided not to contribute to this year’s festival.
RE-BUILDING PRIDE TORONTO
No doubt, many crisis sessions followed the public sponsorship fallout, with Mr. Modeste appearing on multiple news outlets to discuss the situation. His media engagement sparked a wave of renewed attention, with some sponsors and supporters who publicly voiced their commitment to the festival.
“As major corporations across North America retreat from their commitments to diversity, equity, and inclusion (DEI), SEIU Healthcare is stepping forward. Representing over 65,000 healthcare workers in Canada, the union is proud to become an Official Sponsor of Pride Toronto 2025 with a $50,000 contribution, reaffirming its unwavering support for the 2SLGBTQIA+ community.”
Press release from SEIU Healthcare.
To respond strategically, Pride Toronto partnered with their creative agency to launch the All In campaign —a collective call to action designed to protect what matters, amplify 2SLGBTQI+ voices, and ensure Pride remains free, fierce, and accessible for all. The campaign went live in May, just one month before Pride Month. To date, no public information has been released regarding the funds raised.
Pride Toronto worked with their creative agency to create their fundraising and volunteer campaign, All In, described as a collective call to action — to protect what matters, uplift 2SLGBTQI+ voices, and keep Pride free, fierce, and accessible for all.
The campaign launched in May, one month before Pride month. No information has bee released on how much money the campaign earned.
While we don’t yet have officially shared data on festival attendance, revenues, or confirmed sponsorship totals, reports indicate that the festivities were well-attended. Press coverage also hinted that some Pride activities may have needed to be scaled back to stay within budget.
Bubly’s social media post, as proud sponsor of the 2025 festival.
LESSONS FROM PRIDE TORONTO
Once an organization reaches the scale of Pride Toronto, it’s no longer just about a parade or a festival—it becomes a symbol of political idealism. Pride Toronto embodies a firm commitment to equity and inclusion, even when that stance conflicts with the risk calculations of some corporate sponsors. When political shifts occur, like those in the U.S., an organization can become a direct target of opposition. And corporations do not like risk.
Building resilience requires a strategy grounded in your strongest supporters and allies. Whether you’re a nonprofit, festival organizer, or emerging organization, there are four key lessons to consider:
Discover & focus on your allies.
Too often, organizations focus on those who are not aligned, who left them on “read,” or who didn’t show up. During the Pride Toronto sponsorship fallout, much attention went to the sponsors who pulled out—but little was said about those who stayed and stepped up to fill the gap. Your supporters are a critical part of your brand story. Celebrate them, showcase them, and build from their commitment.
2. Diversify your funding sources.
It cannot be overstated: diversification is essential. Reports indicate that corporate sponsorships accounted for 63% of Pride Toronto’s revenue. Could memberships, merchandise, donations, or alternative revenue streams be strengthened to offset risk? A broad funding base protects your organization from sudden shifts in the external landscape.
3. Protect your resources with documentation.
The sponsorship world was once largely relational, consisting largely of handshakes, verbal agreements, and goodwill. Today, all financial commitments should be documented in writing, with clear agreements, invoices, and payment schedules. Don’t leave your revenue vulnerable to ambiguity.
4. Build resilient funding models.
A resilient model ensures sponsors are aligned with your mission and vision. Alignment drives engagement and long-term investment. But sometimes, sponsors are only present to meet a quota. And that’s you; your organization is the quota! A strong funding model nurtures relationships beyond money, investing in long-term engagement: corporate volunteerism, fundraising activities, and opportunities to deepen the partnership.
“Pride is more than a celebration. It’s a declaration — of love, of protest, and of our presence.
In this moment, as our communities face growing threats and deepening political challenges, both at home and abroad, we need to go All In.”
Kojo Mdoeste. Photo courtesy of Radio-Canada.ca
5. Communicate with transparency.
Effective communication is good strategy in action. Uncertainty, confusion, or blame can obscure the path forward, hinder leadership, and dilute brand voice. Pride Toronto was outspoken with the press, but this communication often appeared reactive. As a result, many outlets buried the All In campaign in their coverage. Proactive, transparent communication ensures that your messaging reaches the audience it needs to influence.
LULO’S TAKE ON PRIDE TORONTO
Pride Toronto is no stranger to controversy. Over the years, the organization has faced backlash for its alignment with political groups, allegations of racism, marginalization of smaller community groups, and questions around financial management.
Let’s be clear: Pride Toronto is a risky investment. Corporations that choose to align with them should expect a certain level of controversy.
If Lulo Blue were advising Pride Toronto, we would start by grounding every strategy in the organization’s mission, vision, and core pillars—the elements that define its identity today.
Funding Diversification
We would encourage Pride Toronto to re-engage its community and build an international fundraising strategy and campaign that captures the essence of belonging and supporting the organization that celebrates its audience. Their All In campaign is a strong step in this direction.
Corporate Sponsorship Strategy
We would revisit corporate partnerships by:
Encouraging longer-term commitments (2–3 years), with greater transparency on how sponsor contributions are used.
Evaluating PT’s current large sponsors: Are they deriving value from their investment? Are there opportunities for deeper engagement?
Diversifying the sponsor pool by targeting non-traditional sponsors, small businesses, social enterprises, and community collectives.
Membership Opportunities
Could membership fees or year-round engagement programs be introduced? Benefits for these fees, could include opportunities to spotlight 2SLGBTQ+ businesses and provide ongoing visibility beyond the festival itself.
Audience and Event Strategy
We predict many organizations will face similar sponsorship challenges unless they diversify and strengthen their value offering. Event organizers should double down on the audience experience, ensuring engagement remains central. A festival that draws 3 million attendees over 10 days is inherently relevant. your job is to find the partners who recognize and want to be part of that relevance.
Pride Toronto’s All In Campaign.
LULO’S LAST THOUGHTS
Pride Toronto’s sponsorship fallout is more than a local story - it’s a global case study in how politics, culture, and funding collide.
This year is pivotal for nonprofits: the ability to identify allies and nurture those relationships, engagements, and outcomes is critical.
For organizers, the focus must remain on creating experiences that feel fresh, meaningful, and socially human ie. events that truly connect with audiences.
For newcomer organizations, the priorities are clear: keep costs low, build community, and cultivate trust among your followers. Invest time and energy in a few strong relationships and ensure you have more than one revenue stream—or you risk being caught in a shortfall.
Join me, Lola from Lulo Events, as I continue exploring the intersection of sponsorship, community, and funding. We help organizations strengthen their sponsorship models—not just to attract funding, but to build resilience in uncertain times.
The question is simple: Can you clearly tell me what you want and are you ready to adapt when the ground shifts?
Lola B. is the founder and Chief Strategist of LuLo Events, helping corporations, individuals, and organizations create strategic sponsorship and marketing opportunities. She writes colorfully about sponsorship, community, and culture, and where they intersect.