A recent tax report has revealed that Oprah Winfrey has stopped funding Archwell, the foundation established by Meghan Markle and Prince Harry.
The report further indicates that the Sussexes are no longer donating to Invictus Games and Wellchild, causing a significant drop in contributions.
Archwell Foundation recently posted its 990 tax form for 2022 after facing intense criticism.
In their impact report, Archwell Foundation stated, “We believe that philanthropic work is more than a handout, it’s a handheld.”
The foundation aims to create dynamic and impactful programming independently, while also partnering with key organizations and leaders to address immediate needs and drive long-term change in communities.
According to the tax report, the organization’s non-grant-making expenses have skyrocketed.
In 2022, Archwell received £2 million in donations from two anonymous individuals, a significant decrease from the £11 million received the previous year.
This decline can be attributed to Oprah Winfrey’s decision to halt her donations, resulting in an 81% drop in funds.
The report also highlights a 60% increase in non-grant-making expenses, primarily driven by higher employee costs.
Some employees previously worked for both the profit and non-profit branches of Archwell.
However, with funds running low in their for-profit ventures, such as Spotify and Netflix, these employees are now predominantly paid by the non-profit arm.
As a consequence, if the foundation exhausts its funds, there may be no employees left to continue its work.
In 2022, Archwell received only 15% of the funds it had received the previous year, leading to a decrease of over 50% in grants made.
Interestingly, non-grant-making expenses rose from $890,000 in 2021 to $1.4 million in 2022.
A significant portion of this increase can be attributed to substantially higher employee expenses, which amounted to $640,000 in 2022 compared to $163,000 in 2021.
The tax report also reveals the addition of two key employees in 2022: Michael Dale Stein, Senior Strategic Advisor, and Shauna Knapp.
They joined James Holt, who served as the Executive Director in both 2021 and 2022.
The need for three full-time employees with a combined salary and compensation of nearly half a million dollars raises questions about the allocation of resources for a charity that received only two million dollars in donations.
Critics argue that such expenses could be better utilized to support charitable causes.
Furthermore, the report highlights an increase in payments to independent contractors from $325,000 in 2021 to $428,000 in 2022.
Invisible Hand is listed as an independent contractor for both years.
Despite the decrease in funding, Archwell’s expenditure on grants decreased by over 50%, with $1,252,000 paid out in 2021 compared to $3 million in 2021.
Curiously, the tax report does not mention the whereabouts of the £10 million lump sum received by Archwell last year.
Speculation suggests that this substantial amount may have been pocketed by Meghan Markle.
Additionally, there were no donations listed from Victor’s or Wellchild, raising questions about their role as patrons.
Some critics believe that an investigation by the IRS into potential money laundering activities is warranted.
The impact report also raises concerns about Archwell Foundation’s donations to various organizations.
Although Humanity Crew and Harvest Home are mentioned, their contributions are less than $5,000.
Notably, World Central Kitchen, a top recipient of funds from Archwell in 2021, is absent from both the impact report and the Form 990.
The reason behind this omission remains unclear.
It is expected that donations to Humanity Crew and Harvest Home will appear in the next year’s Form 990.