Last Updated on May 31, 2025 by Bertrand Clarke
As the vibrant streets of Toronto gear up for the 44th annual Pride festival, a financial storm looms over the celebration. Pride Toronto, one of North America’s largest LGBTQ+ events, is grappling with a significant funding shortfall after major corporate sponsors, including Google and Home Depot, abruptly withdrew their support just weeks before the festival’s kickoff on June 26, 2025. The withdrawals, which organizers attribute to a broader corporate retreat from diversity, equity, and inclusion (DEI) initiatives, have sparked a heated debate about the future of Pride and the role of corporate sponsorship in social justice movements.
A Sudden Blow to Pride Toronto’s Budget
Pride Toronto’s executive director, Kojo Modeste, revealed that Google and Home Depot informed the organization of their decisions to pull funding through curt, one-line emails. This follows earlier withdrawals by other major sponsors, including Nissan Canada and Adidas, and a reduction in support from pharmaceutical giant Merck, which slashed its contribution from $40,000 in 2024 to $10,000 this year. The combined losses have left Pride Toronto facing a staggering $700,000 funding gap, threatening the scale and accessibility of the 2025 festival, which is expected to draw over 3 million attendees.
Modeste expressed frustration at the timing and manner of the withdrawals, noting that both Google and Home Depot had been listed as “rainbow” sponsors—contributing at least $40,000 in cash or in-kind goods—in the 2025 Pride Guide, released on May 2. “We acted in good faith, based on their verbal and written commitments,” Modeste said. “These are not just financial losses; they’re a signal of shifting priorities that could have ripple effects for our community.”
The festival, which relies on corporate sponsorship for more than half of its $5.5 million annual budget, supports hundreds of local artists, pays staff, and ensures the event remains free for attendees. Without these funds, organizers are now scrambling to reimagine the festival’s scope, potentially reducing the number of stages and events.
The DEI Backlash: A Transatlantic Chill
The retreat of corporate sponsors from Pride Toronto is widely seen as a consequence of a growing backlash against DEI initiatives, particularly in the United States. Since January 2025, the U.S. administration has intensified efforts to dismantle DEI programs, with an executive order signed on President Donald Trump’s first day of his second term banning federal DEI activities. This directive has led to the termination of at least 30,000 federal workers involved in diversity initiatives, creating a chilling effect on corporations operating across the Canada-U.S. border.
Sui Sui, a professor at Toronto Metropolitan University specializing in DEI, explained that companies like Google and Home Depot, which conduct significant business in the U.S., are likely distancing themselves from initiatives that could be perceived as politically contentious. “These are American companies showing their true colors,” Sui said. “The anti-DEI rhetoric in the U.S. is reshaping corporate behavior, and Canada is feeling the fallout.”
Eddy Ng, a professor at Queen’s University in Ontario, echoed this sentiment, noting that corporate support for DEI often stems from a desire to appear socially responsible rather than genuine commitment. “When the political climate shifts, these companies are quick to pivot,” Ng said. “It’s not just about Pride; it’s a broader rollback of support for marginalized communities.”
Community Resilience Amid Corporate Retreat
Despite the financial setbacks, Pride Toronto remains defiant. Modeste emphasized that the festival will proceed, albeit with potential adjustments. “Our festival will go on,” he said. “It may look different, but its spirit remains rooted in resilience.” To bridge the funding gap, Pride Toronto is introducing a new donation program for festivalgoers and actively seeking new sponsors. The organization has also received a boost from the City of Toronto, which increased its funding by 33% to $2.5 million for 15 LGBTQ+ festivals in 2025, though this falls short of fully addressing the shortfall.
Community advocates argue that the loss of corporate sponsors could be an opportunity to return Pride to its grassroots origins. Susan Hooper, a longtime LGBTQ+ activist, suggested that reliance on corporate funding may have diluted the festival’s radical roots. “Pride was born out of protest, not corporate branding,” Hooper said. “This could be a chance to refocus on community-driven celebrations.”
However, others warn that reduced funding could limit the festival’s accessibility and visibility, particularly for younger generations. Modeste, who grew up in an era with limited Pride celebrations, expressed concern about the impact on future generations. “I don’t want to be the one to take Pride away from the community,” he said.
A Broader Trend Across North America
Pride Toronto is not alone in facing corporate sponsor withdrawals. In the U.S., events like San Francisco Pride and Utah Pride have reported significant funding losses, with San Francisco losing $300,000 from sponsors like Comcast and Anheuser-Busch. New York City and Philadelphia have also seen major backers, including Mastercard and Target, pull support. Organizers attribute these losses to a combination of anti-DEI sentiment and economic uncertainties, such as fears of new U.S. tariffs announced in May 2025.
In Australia, the Sydney Gay and Lesbian Mardi Gras confirmed that Google and Meta withdrew sponsorship for its 2025 event, citing the companies’ failure to meet partnership requirements focused on DEI commitment. This global trend has raised alarms about the sustainability of large-scale Pride events, particularly as they face increased security costs amid rising anti-LGBTQ+ sentiment.
Corporate Responses and Public Reaction
Neither Google nor Home Depot provided detailed explanations for their decisions. A Home Depot spokesperson told CityNews that the company “continually reviews” its nonprofit giving and had no agreement in place to sponsor Pride Toronto in 2025. Google did not respond to requests for comment but had previously been a “bronze” sponsor, contributing $47,000 in 2024.
Public reaction on platforms like X has been mixed. Some users praised the companies for withdrawing, citing concerns about the festival’s direction, while others condemned the move as a betrayal of the LGBTQ+ community. “Google and Home Depot have my business!” wrote one X user, while another called the withdrawals “a wake-up call” for Pride Toronto to address community concerns.
Looking Ahead: A Test of Values
As Pride Toronto navigates this crisis, the broader implications for LGBTQ+ advocacy are stark. Aida Sijamic Wahid, a professor at the University of Toronto’s Rotman School of Management, noted that corporate sponsorships are often about brand visibility rather than genuine allyship. “Companies pull out to avoid controversy,” she said. “But this risks alienating a community that drives significant economic and cultural value.”
The festival, set to run from June 26 to June 30, 2025, will feature events like the Starry Night celebration, Disco Disco, and the iconic Pride Parade, which last year drew 750,000 participants. Despite the funding challenges, Modeste remains optimistic, calling on new and existing partners to stand by the community. “Pride is about visibility, equity, and justice,” he said. “We’re asking our partners to show that their support is not conditional.”
As Toronto prepares for Pride Month, the city’s values of inclusion and resilience will be tested. With corporate support waning, the community’s ability to rally—through donations, grassroots efforts, and unwavering spirit—will determine the future of one of the world’s most celebrated Pride festivals.
