The Archwell Foundation, the philanthropy organization founded by Meghan Markle and Prince Harry, has recently come under scrutiny for its alleged misrepresentation of its financial status.
A report had suggested that the foundation was facing financial difficulties due to a significant decrease in revenue between 2021 and 2022.
However, sources with direct knowledge have revealed that this report is misleading and lacks important context.
According to insiders who spoke to TMZ, the Archwell Foundation is not a corporation, and therefore cannot be evaluated solely based on profit and loss.
Despite the decrease in donations, the foundation is still thriving and ended the year with over $8 million in its bank account.
The recent tax filing showed a decline in donations from $13 million in 2021 to approximately $2 million in 2022.
Additionally, the foundation reported a loss of around $674,000 due to higher expenses compared to revenue.
However, it is important to consider the overall context.
It is not uncommon for charitable organizations to experience a decrease in donations after their initial year, as the first year is often the strongest.
The Archwell Foundation wisely saved a substantial amount of money received between 2020 and 2021, which they are now allocating towards their long-term goals.
While donations may be down, the foundation remains committed to its philanthropic endeavors.
Although the Archwell Foundation is currently stable within the 501 world, it is under pressure to find new ways to generate donations and revenue.
The foundation’s ability to sustain itself relies on its capacity to continue attracting financial support.
However, recent allegations suggest that the foundation may be using its resources to evade taxes and hide money.
In its second full year of operation, the Archwell Foundation must carefully manage the significant funds it has accumulated.
It is crucial for the foundation to avoid depleting its reserves too quickly.
While their intention is to distribute as much money as possible to various organizations, they also face increased expenses that limit their ability to do so.
The foundation currently holds around $8 million, but questions arise regarding why they have only donated approximately $1 million in the past year.
Furthermore, according to their 2021 financial documents, there is a discrepancy of around $1-2 million that remains unaccounted for.
One reason for reserving funds is to support long-term projects that require multi-year and multi-stage funding.
However, concerns have been raised about how Meghan and Harry are utilizing charity funds for potentially lavish expenses.
It is unclear whether the funds are being used for necessary expenditures such as commercial airfare and secure accommodations for mental health events or for more extravagant purposes like private jet travel and luxury suites.
Additionally, it is worth investigating the two redacted lines in the official documents, as they may provide further insights into the foundation’s financial activities.
In terms of their involvement in the Archwell Foundation, Prince Harry and Meghan Markle, referred to as the Duke and Duchess of Sussex and co-directors in official documents, reportedly dedicate only 60 minutes per week to the organization.
This translates to a mere two days of work per year.
In contrast, Executive Director James Holt and Strategic Advisor Michael Del Stein both work 40 hours per week, while Sean Annette serves as the treasurer.
As the controversy surrounding the Archwell Foundation continues, attention should be focused on the transparency and accountability of the organization’s financial practices.
It is essential to ensure that donated funds are being allocated appropriately and effectively to make a positive impact on the causes the foundation supports.