Item - 2017.CD24.4

The Community Development and Recreation Committee recommends that:

1.  City Council adopt the vision, objectives, principles, and commitments set out in Appendix 1 to the report (November 7, 2017) from the Deputy City Manager, Cluster A.

2.  City Council direct the Deputy City Manager, Cluster A to implement the proposed actions set out in Appendix 2 to the report (November 7, 2017) from the Deputy City Manager, Cluster A, with the exception of Actions No. 7 and No. 8.

3.  City Council direct the General Manager, Economic Development and Culture, the Director, Purchasing and Materials Management and the Executive Director, Social Development, Finance and Administration to consider the following Actions No. 7 and No. 8, as set out in Appendix 2 to the report (November 7, 2017) from the Deputy City Manager, Cluster A, for potential inclusion in future operating budgets:

 7.  Establish a Not-for-Profit Sector Specialization within Economic Development and Culture Division, focused on optimizing the economic impact of not-for-profits and strengthening the sector's role in inclusive economic development.

8.  Work with City Divisions, Agencies and Corporations to educate them on potential advantages from including qualified Not-for-Profit Sector organizations into a competitive procurement and work with them to develop potential guidelines on how to structure a competitive procurement that makes it fair for not-for-profit sector organizations and for-profit sector organizations to compete.

4.  City Council direct the Executive Director, Social Development, Finance and Administration to coordinate and monitor the implementation of the recommendations in the report (November 7, 2017) from the Deputy City Manager, Cluster A, and to provide a progress report to the Community Development and Recreation Committee every other year, starting in 2019.

5.  City Council forward the report (November 7, 2017) from the Deputy City Manager, Cluster A to the Premier of Ontario, the Minister of Citizenship and Immigration and the Federal Minister of Employment and Social Development.

Governments across Canada and internationally are moving to recognize and optimize their relationships with the not-for-profit sector, in light of the unique role that not-for-profit organizations play in advancing social, cultural, and economic vitality in their jurisdictions . This report responds to Council direction to design a "whole-of-government" policy framework to guide the City of Toronto's interactions with the community-based not-for-profit sector ("the Sector"). 

The vision guiding this policy framework is vibrant, inclusive, engaged and equitably resourced communities that benefit all Torontonians. The framework is intended to enable the City to optimize its relationship with the Sector and respond to the Sector's contributions to the public good more strategically and consistently, while at the same time not hindering the flexibility that both parties continue to need to execute their work.

The framework is also intended to help to educate Torontonians about the public benefits generated by the Sector and to acknowledge formally the City's reliance on an interdependent relationship with the Sector to achieve many city-building goals.

It is not widely recognized that the community-based not-for-profit sector is a significant economic actor in Toronto and employer in Toronto, generating at least $14 Billion in revenues and over 200,000 jobs (full time and part-time). Moreover, the Sector often represents the first access point for vulnerable individuals entering the workforce and therefore serves as an important conduit for residents' economic inclusion. However, the City does not currently have a strategy for relating with the Sector from an economic development standpoint in the same way that we cooperate with many industries in Toronto. The policy framework and actions proposed here will position the City to provide greater encouragement and monitoring of the Sector's economic impact and workforce development.

The not-for-profit sector is integral to the work of the City of Toronto. In particular, the City relies on the Sector as the delivery arm for hundreds of community services that are provided to residents, including but not limited to social housing, child care, employment and social services, shelter services and cultural programming.  The City's investments in the Sector are estimated at $900 Million. However the City does not currently bring a whole-of-government lens to document and optimize financial transactions with the Sector. The proposed policy framework and actions would prepare the City and the Sector to take these steps.

The City also lacks a consistent framework or set of guiding principles for relating with the Sector in terms of shared city-building goals in the areas of service delivery, community engagement and policy development. The City can frame its relationship with the same not-for-profit organization in several different and potentially contradictory ways, depending on the type of interaction.  While this flexibility ensures Divisions and not-for-profit organizations can achieve their mandates, lacking an overarching framework limits capacity to create and achieve strategic objectives.  The policy framework and actions proposed here will establish the groundwork for stronger and more strategic cooperation between the City and the Sector.

The expression, "Not-for-Profit," distinguishes the Sector from the business world but does little to convey the Sector's role or contributions. The proposed policy framework is entitled "For Public Benefit" to introduce new language that names the role and contributions of the Sector meaningfully and positively, in terms of what the Sector is "for"; rather than what it is not "for".

The proposed framework was co-designed with a Community Advisory Table and is informed by stakeholder consultations and an extensive literature review conducted by Social Planning Toronto. It contains a vision statement, objectives, a statement of principles and six strategic commitments to guide the City in its diverse interactions with the Sector.  Application of the principles and commitments will take different forms, depending on the nature of the work. The Report also recommends sixteen specific actions to enhance existing or create new support mechanisms for the City to relate with the Sector in alignment with the strategic commitments.

Proposed vision, objectives, principles, and commitments are presented in Appendix 1.  Proposed actions are presented in Appendix 2. The full report on stakeholder consultations and the literature review is attached as Appendix 3.