Cara Benjamin-Pace, executive director of Newcomer Kitchen, in her office at the Centre for Social Innovation in Toronto on Oct. 3.Galit Rodan/The Globe and Mail
A Toronto non-profit that provides affordable rental places to small businesses and organizations is launching a fundraising campaign to buy out its expensive mortgages as it faces soaring operating costs.
The Centre for Social Innovation (CSI) has seen its mortgage rate climb to 6.5 per cent from 3.3 per cent on the two office buildings it owns in downtown Toronto. The increased cost threatens the organization’s ability to continue operating.
Now it is hoping to raise $10-million in new borrowing through community bonds, allowing it to replace the existing mortgages. A community bond is a type of investment that allows groups or individuals to support non-profit or community initiatives while earning interest payments over time.
The community bonds campaign, set to launch officially at the CSI’s 20th anniversary party this Thursday, is open to both organizations and individuals, with a minimum investment of $1,000. The interest rate on the bonds has not been set yet, but CSI said it would be between 4 per cent and 5 per cent.
CSI chief executive officer Tonya Surman said she wants to avoid the fate of Artscape, a similar Toronto non-profit that leases spaces to artists, which went into receivership earlier this year after it was unable to pay its debt of more than $20-million. Its financial problems jeopardized hundreds of artists’ work spaces.
Ms. Surman expressed concerns about CSI potentially closing down because of its financial struggles. “Where will people find co-workers, co-founders and suppliers?” she said.
CSI has one office building on Spadina Avenue and the other on Bathurst Street. Last September, the organization listed its Bathurst property for sale as it faced financial difficulties but received just two offers, both of which they said were too low.
“There couldn’t be a worse time to sell a commercial real estate building,” Ms. Surman said. “We would’ve been in a worse situation had we accepted one of these offers.”
CSI offers private offices, dedicated desks and access to lounge and co-working spaces to more than 6,000 members across various fields, from climate management to food security. In addition, it connects members with networking opportunities and promotes their work.
The Newcomer Kitchen is a non-profit that started in 2016 with a group of Syrian refugee women gathering to prepare and share home-cooked meals.
Shortly after, it started a social enterprise selling meals online and later expanded to catering and training newcomer women in entrepreneurship. The program received federal funding in 2019 and moved into its first office at the CSI building on Spadina Avenue.
Cara Benjamin-Pace says that joining CSI was transformative.Galit Rodan/The Globe and Mail
Co-founder and executive director Cara Benjamin-Pace said that joining CSI was transformative. CSI not only provides office and kitchen space at affordable prices, but also a significant customer base from the events it hosts, Ms. Benjamin-Pace said.
“It was like coming home,” she said. “Our organization would not be flourishing the way it is today without that community.”
Another CSI member, Just Like Family Home Care, provides home-care services to elderly people across Canada. It moved into CSI’s Bathurst building in 2023.
“It’s just a stark difference from where we were before. Being in a place with like-minded people making a difference just feels different,” chief executive officer Carla Langhorst said.
Ms. Surman said that she needs investment from the community because she can’t turn to her members to fill the gaps.
“I can’t raise people’s rent; they’ll leave,” Ms. Surman said. “I don’t want to raise their rents. I want to make sure things are affordable, and the only way I can do that is by figuring out a way to keep costs at a reasonable level.”
Dihan Chandra, the founder and managing director of CSI member Spent Goods, said in an e-mail statement that “an increase in rent or CSI closure would be a fatal blow to this ecosystem of small to medium businesses.”
Ms. Langhorst echoed these sentiments and emphasized the role CSI plays in fostering a collaborative culture.
“I’m not sure where we would turn. I don’t believe there’s another place that aligns with our values and provides the supportive environment we seek, surrounded by the people we want to be with,” she said.