The Toronto-Dominion Bank and will provide $14.5 million in funding to Social and Enterprise Development Innovations (SEDI), a charitable organization that helps low income and otherwise economically disadvantaged Canadians gain financial independence, the two organizations announced Tuesday.

Tim Hockey, president and CEO, TD Canada Trust, and Peter Nares, executive director of SEDI, said the money will go to SEDI’s Canadian Centre for Financial Literacy, which was co-founded by TD and offers financial literacy programs across Canada.

Funds will also be used to launch the TD Financial Literacy Grant Fund, which is the first of its kind in Canada and will distribute millions in grants to community groups for financial literacy training.

“Financial literacy has been an issue for some time but the recent recession brought the issue into focus for many Canadians, especially those in economically vulnerable groups,” said Hockey, CEO and President, TD Canada Trust.

“Within five years, this new funding will make it possible for the Canadian Centre for Financial Literacy to reach out to over 230,000 people among lower-income groups,” said Nares.

“With over 4.7 million people living on a low income in our country, we hope that the current economic climate, and initiatives such as this one by TD, will lead the business community and governments to recognize that financial literacy is an essential life skill and to champion this cause,” Nares added.

The Canadian Centre for Financial Literacy was started in 2008 to help build and develop financial literacy among low income Canadians. The CCFL delivers easy-to-use money management training for low income groups through social agencies. The CCFL will receive $3.5 million from TD to support the training of staff and build the capacity of nonprofits to deliver financial literacy programs throughout the country.

The remaining $11 million dollars will be used to create The TD Financial Literacy Grant Fund to significantly accelerate the pace at which SEDI can bring financial literacy skills to low income and disadvantaged individuals. The new fund, administered by SEDI, will provide grants ranging from $25,000 to $100,000 to qualified community based agencies, charities and not-for-profit organizations to help integrate financial literacy training into services they deliver to their clients.

TD has been a strong supporter of SEDI’s financial literacy programs over the last five years. TD provided the $14.5 million in funding announced Tuesday as part of a class action settlement concering foreign currency chares on TD Visa transactions (Cassano vs TD) agreed to in 2009, a donation that was approved by the court as reasonable and fair and that was in the best interest of Canadians.

IE