The Toronto Dollar: Community Alternative Dollar

This local currency is 90% backed by national currency, in this case the Canadian dollar, and participating merchants are free to exchange back to national currency anytime. The Toronto Dollar system is very similar to BerkShares. The added feature of being able to swap local currency for national dollars is a huge bonus for merchants who may need national currency to replenish and re-stock their stores items.

Toronto Dollars Community Projects Inc was launched in late 1998 at the St. Lawrence Market. It began as a citizens´ action in the St. Lawrence neighborhood. It is a non-profit corporation and a compassionate organization created by community minded citizens.

This project receives support not only from merchants and users but also from local social activists, clergy, political leaders and even several local mayors.

The concept behind the Toronto Dollar was to use it as a tool for the purpose of creating a better community and more prosperous local economy. A place where local spending power falls squarely in the hands of people who need it most. Using this local currency:

• strengthening the local economy and supports new business
• keeps money working and circulating locally
• brings decision making back to the community
• creates new employment opportunities
• supports community projects with the funds received from the 10% merchant contribution

Toronto Dollars are very similar to BerkShares. Each time you purchase one Toronto Dollar, .90 cents of Canadian dollars gets deposited in their ´reverse fund´. With local currency in hand you can spend it at any participating local business. Find their merchant directory online at http://torontodollar.com

To buy Toronto Dollars anyone can exchange Canadian dollars for Toronto dollars at participating local organizations. Here is a quick list around the City: CIBC Bank, The Royal Bank, St. Lawrence Community Recreation Centre, The Toronto Dollar Information Booth (every Sat.), Hairy Tarantula´s, C´est What Restaurant and the St. Lawrence Smoke and Gift Shop.

If as a participating merchant you find yourself taking in too many Toronto Dollars you have the option of making a reverse exchange back to national currency at .90 on the dollar. So there is a slight penalty for the reverse exchange which amounts to 10 cents on every dollar.

If you would like to become a Toronto Dollar merchant the new registration fee is just $25. A participating local merchant is guaranteed liquidity from local currency back to national dollars. Any merchant wishing to redeem their Toronto Dollars for CAD has two opportunities each month to do so through the North St. Lawrence Market.

Consequently when accepting Toronto Dollars, there is no extended financial liability for your business. If you require national currency to restock store shelves, you can make that exchange twice a month. This feature, as we have seen, creates a rock solid business environment for local merchants. Not being able to restock store shelves from suppliers using the local currency or scrip has show to be one of the biggest drawbacks of starting and maintaining successful a community currency. Both BerkShares and Toronto Dollar seem to have conquered that issue.

Perhaps the best feature of this project is that 10% of every Toronto Dollar goes to support local community projects. As David Walsh from their web site explains, "...our goal has been to direct the limited funds generated by the Toronto Dollar project to people who are struggling to make a living."

The community in Toronto, always seems engaged in some event or party and it usually includes the local currency. The Toronto Dollars has helped to co-sponsor and initiate events and programs, such as the Toronto Dollar Party, the Global Roots festival, the Holy Trinity / Margaret Atwood Concert, the Frankly Bob Awards, the Elaine Hall Awards, the St. Lawrence forums, etc.

What are the economic benefits to the community?

Charitable and non-profit community organizations and approved projects can benefit in two ways. They can exchange 110 Toronto Dollars for 100 Canadian dollars by contacting the treasurer. They are also eligible to receive grants from the Community Fund.

Charitable and non-profit community organizations and individuals can offer Toronto Dollars as gifts for work. In the case of welfare recipients, the Toronto Dollars received as gifts do not affect welfare benefits. Thus Toronto Dollars can provide an incentive to welfare recipients to supplement their income.

The first Toronto Dollar grant of 1,000 Toronto Dollars was given to the Out of the Cold program. To date over 35 community organizations have received funds. This has meant: free dance classes for youth, nutritious breakfasts for school children, food and clothing for street people, furniture for low income people, camping trips for children, ´thank-you gifts´ for caring services etc.

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