In recent years, I have written extensively about the evolving mental health landscape—one where the challenges are well-documented, yet solutions remain frustratingly slow. As Viewpoint Foundation’s main strategic focus is in this sector, I have seen firsthand how systemic barriers—such as funding constraints, limited access to care, and persistent stigma—prevent many from receiving the support they need. In Canada, these issues are further exacerbated by jurisdictional complexities, regional disparities, and long wait times for mental health services, particularly in community-based care. While governments and healthcare systems play essential roles, private foundations have emerged as powerful catalysts for change. By leveraging financial resources, strategic partnerships, and the ability to drive innovation, they are uniquely positioned to bridge critical gaps in care and advocacy—helping to create a more responsive and equitable mental health system.
Why There are Gaps in Government Funding of Mental Health Care
Despite increasing demand for mental health services, government funding has consistently lagged behind the need. Several historical, structural, and political factors contribute to this persistent gap.
1. A Legacy of Underfunding
Mental health care has historically received a fraction of the funding allocated to physical health care. While provincial governments are responsible for administering healthcare in Canada, mental health services have often been deprioritized in favour of acute care and hospital-based treatment. The roots of this underfunding stretch back to 1957 when the federal government, in shaping Canada’s public health insurance system, deliberately excluded mental hospitals. At the time, Health Minister Paul Martin Sr. argued that the provinces had long funded asylums, and with an existing federal mental health grant in place, there was no need for further federal support. This decision left a significant funding gap—one that has never been fully closed (Bartram & Lurie, 2017).
When provinces later promised to transition from institutional to community-based mental health care, the goal was to provide more integrated and localized support. However, while hospital beds were closed, funding was not effectively reallocated to community services, leaving many without adequate care. The Canada Health Act—which could have broadened health insurance to cover non-physician mental health providers such as psychologists and psychiatric nurses—focused instead on eliminating extra billing, failing to address systemic mental health funding gaps (Bartram & Lurie, 2017).
2. Fragmented Jurisdiction & Political Barriers
Mental health care in Canada falls under both federal and provincial jurisdiction, leading to a fragmented funding structure. While the federal government provides targeted investments—such as the 2017 $5 billion mental health transfer over ten years—it is ultimately up to the provinces to allocate those funds. This results in disparities in service delivery across regions, as provinces and territories set their own priorities. Political tensions between federal and provincial governments further complicate funding agreements. For example, in 2016, then Federal Minister of Health Jane Philpott attempted to introduce targeted mental health transfers with clear conditions and accountability measures. While three Atlantic provinces accepted the offer, most provinces held out for greater autonomy and additional funding, delaying meaningful progress until 2017 (Bartram & Lurie, 2017).
3. Competing Priorities & Systemic Challenges
Governments must allocate healthcare funding across numerous pressing demands, including aging populations, emergency services, and chronic disease management. Mental health services often struggle to secure sufficient resources within this landscape. Moreover, stigma and outdated perceptions of mental illness have historically led to its lower prioritization compared to physical health needs. Even as awareness grows, mental health continues to receive limited government investment. According to the WHO Mental Health Atlas (2020), global government mental health spending represents just 2.1% of total health expenditures, with an even lower share in low- and middle-income countries (Prospira Global, 2024).
Even when funding is available, Canada faces a severe shortage of trained mental health professionals, particularly in rural and Indigenous communities. Without enough providers, expanding services remains a challenge, further restricting access to care (Prospira Global, 2024).
4. Bridging the Gaps: The Role of Private Foundations
Given these structural barriers, it is clear that governments alone cannot meet the growing demand for mental health services. The global financing gap for mental health is estimated at $200 billion USD, highlighting the scale of the challenge. While governments remain central to mental health funding, private foundations play a crucial role in filling the gaps by supporting innovative care models, investing in community-based services, and advocating for policy changes. Without targeted federal transfers backed by effective accountability mechanisms, history has shown that provincial and territorial governments are unlikely to bridge the funding shortfall on their own (Prospira Global, 2024).
The Role of Private Philanthropy in Advancing Mental Health Support
1. Funding Innovative & Underfunded Programs
Private philanthropy plays a crucial role in strengthening the mental health sector, often funding initiatives that fall outside traditional government priorities. While public funding tends to focus on acute care and crisis intervention, many preventative, community-based, and early intervention programs remain underfunded. Private foundations help bridge this gap by supporting holistic mental health initiatives that promote resilience, provide early support, and ensure individuals receive care before reaching a crisis point (Reid et al., 2023).
An example of philanthropic leadership in mental health is the Graham Boeckh Foundation, which has championed the Integrated Youth Services (IYS) model across Canada. IYS brings together health, education, and social services in centralized hubs, eliminating fragmentation and making it easier for young people to access the support they need. Similarly, at Viewpoint Foundation, we strive to invest in innovative and compassionate approaches to mental health care. Our article in the December issue of Invested gave an in-depth look at the organizations we support and the incredible work they’re doing in the mental health sector, making significant strides in providing accessible mental health resources to youth, families, and individuals.
Philanthropy has also been instrumental in funding peer-support initiatives, digital mental health solutions, and culturally responsive programs tailored for marginalized communities—critical areas that often struggle to secure public funding. The impact of private giving in this sector is undeniable. According to the Institute for Health Metrics and Evaluation, in 2023, private philanthropy contributed $74 million USD to mental health initiatives globally, accounting for nearly half (46.5%) of all mental health development assistance (Prospira Global, 2024). These contributions are helping to drive systemic change, making mental health support more proactive, inclusive, and widely accessible.
2. Driving Systemic Change Through Research & Advocacy
Beyond direct funding, private foundations play a key role in advancing mental health research and policy change. By investing in research, foundations contribute to a deeper understanding of mental health conditions, treatment effectiveness, and the social determinants of mental health. This evidence-based approach can inform better policies and encourage government agencies to adopt more effective and equitable mental health strategies (Reid et al., 2023).
For instance, the Mental Health Commission of Canada (MHCC), while federally funded, collaborates with private foundations to advance mental health research and advocate for systemic reforms. The MHCC’s work on the National Standard for Psychological Health and Safety in the Workplace, supported by private and corporate philanthropy, has influenced how Canadian workplaces approach mental well-being (Mental Health Commission of Canada, n.d.).
In addition to research, many foundations engage in advocacy to influence public policy and combat stigma. The Bell Let’s Talk initiative, while corporate-driven, has benefited from philanthropic partnerships, raising awareness and funding grassroots mental health initiatives across the country.
3. Supporting Collaboration & Cross-Sector Partnerships
One of the most powerful roles private philanthropy can play in the mental health sector is fostering collaboration across industries and disciplines. Foundations have the flexibility to act as conveners, bringing together non-profits, healthcare providers, researchers, and policymakers to develop cohesive and innovative solutions. By facilitating dialogue and resource-sharing, they help align efforts across sectors, reducing duplication and maximizing impact (Reid et al., 2023).
An example of this approach is the Max Bell Foundation, which has been instrumental in funding projects that bridge policy research with real-world implementation. Ensuring that mental health initiatives are supported by strong evidence and reach the communities that need them most creates meaningful, scalable change.
Beyond research and training, many foundations have led multi-sector initiatives that integrate mental health care with social services, education, and employment programs. This holistic approach embeds mental health support into broader societal structures rather than treating it in isolation. By fostering partnerships that span multiple disciplines, private philanthropy plays a crucial role in reshaping mental health care to be more inclusive, coordinated, and impactful (Reid et al., 2023).
4. Fostering Scalable & Sustainable Solutions
Private philanthropy also plays a critical role in piloting and scaling innovative mental health interventions. Unlike government programs, which often require lengthy approval processes, private foundations have the flexibility to take calculated risks, testing new models of care that can later be integrated into public healthcare systems for lasting impact.
A prime example of this is Kids Help Phone, Canada’s leading youth crisis line, which has expanded its digital mental health services through philanthropic funding. By investing in text-based and online support, foundations have helped scale up accessible mental health resources, particularly benefiting youth in remote and Indigenous communities where traditional services may be scarce. Similarly, philanthropic investments in trauma-informed care models in schools, workplace mental health initiatives, and integrated care approaches—combining mental health support with primary healthcare—demonstrate how foundations can validate new approaches and build the case for wider adoption (Bartram & Lurie, 2017).
By proving the effectiveness of these programs, private philanthropy helps lay the groundwork for sustained public and private funding, ensuring that innovative solutions don’t just remain pilot projects but become foundational components of the broader mental health system.
Barriers to Philanthropic Funding in the Mental Health Sector
Despite the growing recognition of mental health as a critical area for investment, philanthropic funding in this space faces several significant barriers. One of the most pressing challenges is the sheer scale of unmet needs, which can feel overwhelming for funders. With so many issues requiring support—from crisis intervention to early prevention and long-term care—determining where and how to make an impact can be daunting. Additionally, some funders hesitate to enter the space without assurances that other organizations will also commit, fearing that mental health initiatives require indefinite funding and don’t offer a clear exit strategy. This hesitancy can stall momentum, leaving crucial programs underfunded (Prospira Global, 2024).
Another major challenge is the lack of standardized success metrics. Mental health initiatives often suffer from inconsistent impact measurement, a lack of common outcome indicators, and limited access to case studies or proven success stories. This makes it difficult for funders to assess effectiveness and justify long-term investment. Furthermore, fragmented funding priorities complicate the landscape, as differing beliefs about which aspects of mental health deserve support—whether prevention, intervention, or systemic change—can lead to clashing strategies and inefficient allocation of resources (Prospira Global, 2024).
Even for experienced grantmakers, developing a targeted and effective funding strategy in mental health is complex. Many potential grantees are under-resourced and lack the capacity to launch new initiatives or navigate partnerships with foundations. This structural challenge limits the ability of funders to invest in truly transformative programs. Additionally, some grantmakers may overestimate their understanding of the mental health sector, leading to ineffective decisions being made and missed opportunities for impact (Reid et al., 2023).
Private foundations in Canada are uniquely positioned to address mental health gaps by funding innovative programs, driving systemic change through research and advocacy, fostering collaboration, and scaling impactful solutions. Their ability to be nimble, take strategic risks, and act as conveners makes them invaluable players in the effort to build a more accessible, equitable, and effective mental health system. As mental health needs continue to rise, the role of private philanthropy in shaping the future of mental health care will be more critical than ever.
The complexity of mental health funding in Canada reflects a broader challenge—one that requires sustained effort from multiple sectors. While governments remain the primary funders of healthcare, systemic gaps in mental health services persist, shaped by historical underfunding, jurisdictional fragmentation, and shifting political priorities. Private philanthropy has proven to be a vital force in bridging these gaps, offering the flexibility to pilot new models, fund under-resourced programs, and advocate for meaningful policy change. Yet, the road ahead remains uncertain, with funders navigating a landscape where impact measurement is still evolving, and collaboration is both essential and complex. As philanthropy continues to play an expanding role in mental health, its greatest strength may lie in fostering connections—between sectors, between funders and frontline organizations, and most importantly, between individuals and the care they need.
Bibliography
Bartram, M., & Lurie, S. (2017). Closing the mental health gap: The long and winding road? Canadian Journal of Community Mental Health, 36(2).
London, E. (2024, October 18). Pioneers are proving that philanthropy has the power to transform global mental health. World Economic Forum.
Mental Health Commission of Canada. (n.d.). The National Standard for Psychological Health and Safety in the Workplace: Assembling the Pieces. Mental Health Commission of Canada.
Prospira Global. (2024). The power of giving: Global mental health financial insights 2024. [PDF].
Reid, M. R., Reid, R. J., Murillo, X., & Bobb, A. (2023). Philanthropy’s uneasy journey into mental health grantmaking. The Foundation Review, 15(4).