The latest tax disclosure from Meghan and Harry’s Archewell Foundation is causing quite a stir, but not in a positive way.
Former generous donor Oprah Winfrey has reportedly decided to cut off her funding.
Meanwhile, Meghan Markle is facing criticism for allegedly accumulating a massive $10 million, casting doubt on her philanthropic integrity.
The foundation, which has enjoyed the limelight of royal philanthropy, now finds itself in a financial quagmire.
In an attempt to emphasize that philanthropy is more than just throwing money at problems, the foundation released its 2022 Form 990 tax form.
However, the financial report tells a different, less flattering story.
Let’s delve into the numbers.
Donations have plummeted by a staggering 81% since Oprah withdrew her support.
This isn’t just a decline; it’s a freefall.
Additionally, the foundation’s overhead costs are alarmingly high, leaving many puzzled and questioning their financial decisions.
Employee expenses have skyrocketed by 60%, leaving observers baffled.
To compound matters, some employees are juggling roles in both the profit and nonprofit sectors of Archewell.
With their for-profit ventures with Spotify and Netflix failing to generate significant revenue, these employees are now relying on the dwindling funds of the nonprofit sector.
In 2022, the foundation received a mere 15% of the previous year’s funds.
Moreover, the grants they distributed also experienced a drastic decline, dropping by over 50%.
However, what raises eyebrows even further is the surge in non-grant-making expenses.
In 2022, these expenses surged from $890,000 to $1.4 million.
Employee-related expenses alone ballooned from $163,000 to $640,000.
The question arises: why would a charity that has only received $2 million in donations need to spend nearly a quarter of that on three full-time employees?
This raises more than just questions; it borders on the absurd.
The fees for independent contractors also saw a significant increase, rising from $325,000 in 2021 to $428,000 in 2022.
As the foundation’s coffers have dwindled to a mere $2 million in 2022 compared to $13 million in 2021, one cannot help but wonder why they are ramping up their spending.
Adding to the controversy is the absence of any mention of the alleged $10 million that Meghan supposedly pocketed in the tax forms.
This omission raises suspicions and questions the transparency of the foundation.
Furthermore, the Sussexes, who often highlight their philanthropic endeavors, have not contributed a single penny to organizations like the Invictus Games or Wellchild.
This disregard for causes they claim to champion is a slap in the face to those affected.
The glaring absence of donations to previously supported groups, such as World Central Kitchen, adds even more red flags to the situation.
It begs the question: what are Meghan and Harry truly aiming to achieve with Archewell?
The numbers do not lie, painting a picture of a foundation driven more by self-serving interests than selfless giving.
This debacle is not merely a public relations nightmare; it serves as a case study on how not to run a charity.
The Sussexes must swiftly rectify the situation if they wish to salvage the credibility of their foundation.