Toronto's Power Plant Contemporary Art Gallery is struggling to stabilize its finances three years after a dramatic board exodus, with auditors warning the institution may cease operations without securing new funding. The gallery has been forced to slash programming from three seasons to two and may require government assistance as it works to rebuild its donor network following the 2022 governance crisis.
KPMG auditors have issued warnings for at least two years that "a material uncertainty exists that may cast significant doubt on the Entity's ability to continue as a going concern," according to documents obtained by The Globe and Mail. The gallery's deficit reached $469,000 at the close of the fiscal year ending March 2024, more than quadrupling from the previous year. While the gallery managed a small $15,800 surplus in 2025, this was achieved through unsustainable cost cuts, according to leadership.
The financial crisis stems from the gallery's tumultuous separation from its longtime parent organization, the Harbourfront Centre cultural complex. The Power Plant became independent this year, losing support that averaged $1.6 million in funding and in-kind services annually over the past two fiscal years. Gallery leadership argues the ongoing shortfall is closer to $500,000, claiming those two years represented exceptional funding levels.
The separation followed a governance disaster in 2022 when the gallery's entire board of directors resigned en masse to protest interference from Harbourfront Centre. The parent organization had replaced half the board with its own candidates and demanded a review of then-director Gaëtane Verna's leadership. Verna left before the review occurred, leaving the Power Plant without leadership or a board for an entire month.
Power Plant chair Paul Boniferro, a former Ontario deputy attorney-general, described the previous relationship as "a governance disaster just waiting to happen." He acknowledged that the gallery may need transitional government assistance, stating, "We need some help, transitionally, here to get on to a solid financial base to secure the financial stability of this place for the future."
The most visible impact has been the reduction in programming from three seasons featuring 12 or more artists annually to two seasons showcasing as few as six artists. The gallery has also converted an upper gallery space for families and schools. This winter, the Power Plant is displaying video installations by U.S. artist Lucy Raven and sculptural pieces by Yukon artist Jeneen Frei Njootli, along with an exterior billboard by Pickering, Ontario photographer Christina Leslie.
Artistic director Adelina Vlas defended the programming cuts as both financially necessary due to surging post-pandemic costs and beneficial for staff work-life balance, which had come under scrutiny during Verna's tenure. Despite fewer exhibitions, the gallery reports visitor numbers have actually increased to 60,000 in 2025 from 50,000 the previous year, with free admission maintained.
The governance crisis severely damaged the gallery's fundraising capacity. Corporate sponsorship and fundraising revenue plummeted 70 percent between fiscal years 2023 and 2024, dropping to $256,000 before recovering to $603,000 in 2025. Foundation grants fell 63 percent from 2023 to 2024, reaching just $132,691, before rising slightly to $148,000 in 2025.
To address the funding shortfall, the Power Plant has hired Lindsey Thomsen, formerly the National Gallery of Canada Foundation's acting executive director, to lead development efforts. The gallery is also preparing to revive its annual Power Ball fundraiser, which raised approximately $500,000 annually since 1999 but has been suspended since the COVID-19 pandemic prevented the 2020 event.
Executive director Carolyn Vesely emphasized that balancing the 2024-25 budget required difficult decisions but was necessary before seeking increased investments. "We wanted to put our house in order before going out and asking for increased investments from others," she explained. The leadership team is now seeking additional funding from all three levels of government while working to rebuild relationships with donors who fled after the 2022 upheaval.
Jacques Bernier, who chaired the board that resigned in 2022, expressed satisfaction with the new governance structure but regretted the programming reduction at what he described as a "best-in-class" institution for boundary-pushing visual art. "The Power Plant is a catalyst and a vital actor in the visual arts ecosystem," he said, questioning how many world-class cultural institutions Canada can afford to lose.
With a new independent board and experienced fundraising leadership in place, Boniferro expressed confidence in the gallery's ability to rebuild its revenue to approximately $4 million annually. The Power Plant serves as both a showcase for Canadian artists and a crucial link to the international contemporary art scene, making its financial stability critical for the country's visual arts community.
