A federal program created to rescue arts groups pushed to the brink during COVID-19 went entirely unused, even as bankruptcies in the sector doubled, according to a newly released audit that left reviewers openly baffled.The Canada Cultural Investment Fund, funded at an average of $24.6 million a year, included a stream meant to offer “limited support for endangered arts organizations.” But, says Blacklock's Reporter, auditors found that over six years — including the height of pandemic lockdowns — not a single group received help.The Evaluation Of The Canada Cultural Investment Fund Program 2019 To 2024 said the bailout component never had its own budget and remained idle despite rising failures among arts organizations. “No results were achieved related to supporting endangered arts organizations,” auditors wrote. “No organizations were funded.”.The sector’s financial collapse was well documented. Bankruptcies in arts, entertainment and recreation jumped from 52 in 2018 to 114 by 2023, while business exit rates climbed 3.5 percentage points in 2020. For-profit performing arts companies fell from 9,897 to 9,564 between 2019 and 2023, and not-for-profits dropped from 1,729 to 1,480.Auditors said they could not explain why the emergency fund went untouched, noting its strict conditions and lack of a defined budget may have made it unusable. .They warned that the failure to deliver aid raises “important questions” about Ottawa’s ability to intervene early when organizations face collapse.Arts groups continued to battle declining attendance, falling donations and sponsorships, inflation, spikes in operating costs and labour shortages.While public funding increased, earned revenues shrank — making the government’s unused rescue fund even more striking as organizations folded.
