The Senate approved the formation of a Regimental Foundation in 1979. The Toronto Scottish Regiment Foundation is a corporation registered under the laws of the Province of Ontario, and has been registered as a Public Charitable Foundation with Canada Customs and Revenue Agency. Its purpose is to raise a permanent or capital fund, the income from which can be given to the Serving Battalion to help cover the costs of maintaining our distinctive highland uniforms, Regimental traditions, and assist in meeting the operating needs of the Serving Battalion not covered by the Department of National Defence.
 
The original financial target of $50,000 was quickly exceeded, and the Permanent Fund is currently at the $320,000 level. Since inception the Foundation has given over $500,000 to the Serving Battalion from income and capital gains on investments.

While the Foundation operates under the guidance of eighteen Trustees as a totally independent entity, it does so under the watchful eye of the Senate , several of whose members are also Trustees of the Foundation.