Harry and Meghan's Archewell Foundation suffers £8.7m drop in donations

The financial situation for the Archewell Foundation has taken a significant hit. Such a substantial drop in donations, from $12.9 million to just over $2 million, has resulted in reported losses, putting the foundation in a challenging position financially.

An income tax return filed in the US revealed that in 2022 donations were down to just over $2million - down from $12.9million in 2021, an astonishing drop of $11million. And 2021's profit of $9million has nosedived amid a lack of donations. The Archewell Foundation recorded a loss of $674,485 for last year because revenue was $2million but costs were $2.67million.

Donations to Prince Harry and Meghan Markle's Archewell Foundation have plunged by $11million (£8.7m) in the past year - leaving it with losses of £537k - with boss and the couple's right-hand man James Holt handed a massive 280% pay rise.

The foundation has filed its annual tax return showing donations have plunged  (top set of circled figures) and a profit has turned into a loss (bottom, circled) - but they do still have cash in the bank

The foundation's highest paid employee is Meghan and Harry's right-hand man James Holt (right with the couple in their Netflix Invictus documentary). He was paid $227,405 a year ($180,835), including a $20,000 (£15,904) bonus

The Sussexes released their charity's annual report and a glitzy promotional film showing their good works in 2023.

Prince Harry and Meghan Markle have released a video showing Archewell's 2023 'impact' - but their annual report also reveals that their foundation has recorded a loss

A decrease in revenue coupled with costs exceeding income has led to a loss for the foundation in the most recent year, which contrasts sharply with the profit recorded in the previous year.

This section of the report shows two contributions of $1million each (£800,000) to Archewell

The significant drop in donations, coupled with a notable absence of a repeat major donor who had contributed $10 million in the previous year, highlights the challenges the foundation faced in fundraising during the reported period.

The tumultuous year for Prince Harry and Meghan Markle, including the release of Harry's memoir and negative portrayals on popular TV shows, could have contributed to a decline in public support and potentially affected the foundation's ability to attract donations.

The detailed breakdown of salaries and bonuses, especially the substantial pay rise for executive director James Holt, raises questions about the foundation's spending decisions in the context of financial difficulties. The spokesperson's defense suggests confidence in their financial management.

The foundation's mission, as described by Harry and Meghan, emphasizes being an "impact-driven global nonprofit" committed to doing good. The reported loss in 2022 prompts scrutiny regarding the foundation's ability to fulfill this mission amid financial challenges.

Despite the reported loss, the foundation still holds a significant amount in cash and assets, indicating some financial resilience. The availability of reserves may provide a buffer for the foundation to continue its operations and work towards its charitable goals.

The Archewell spokesperson contests concerns about the foundation's financial health, emphasizing that the charity is managing its finances well and has millions available to spend each year. This response suggests a degree of confidence in the foundation's ability to navigate its current challenges.

The suggestion that high-profile foundations might front-load their funding and then reduce future fundraising aligns with common practices in the nonprofit sector.

The timing of the release of the impact video, shortly after a positive public reception for Princess Catherine's footage at a baby bank, may indicate a strategic move to maintain or improve the public perception of the Sussexes. The video showcases their involvement in various causes, potentially aiming to highlight their ongoing commitment to philanthropy.

The Wales children helped their mother and volunteers pick out donations and make boxes to go to children in need for Christmas. From left: Louis, Kate, George and Charlotte

Brand experts warning of the potential demise of 'Brand Sussex' following negative publicity from Omid Scobie's book Endgame and reported concerns from William Morris Endeavor (WME) about Meghan's representation suggest the couple faces challenges in managing their public image and brand reputation.

The video's content, featuring activities in Los Angeles, New York, Nigeria, and Texas, underscores the couple's effort to position themselves as global influencers and advocates. It may be a deliberate attempt to showcase their international impact and relevance.

The foundation's high end video includes a clip of Harry and Meghan at a mental health summit in New York as they show the charity's good works

The clip show's Meghan Markle's visit to a charity to help military families

Meghan and Harry paid their respect to troops in  clip shown in the video, which showed them at the opening of a new veterans' training facility in San Diego 

Meghan Markle opted for a $1,490 Carolina Hererra cardigan - emblazoned with poppies - to meet with military veterans and their families at Camp Pendleton in San Diego 

The reported challenges, including the fallout from the book and uncertainties with Meghan's representation, might explain the proactive approach with the video release.

The inclusion of activities like rebuilding a playground in Texas following a tragic event suggests a focus on impactful and meaningful projects. Such initiatives can resonate with the public and contribute to positive perceptions.

The couple appears to have allocated $2 million in grants to support initiatives run by young entrepreneurs, suggesting a commitment to fostering innovation and supporting emerging talent.

Meghan's hosting of a panel discussion at the World Mental Health Day Festival marks an important step for the Archewell Foundation's involvement in mental health advocacy. This event could contribute to destigmatizing mental health issues and promoting awareness.

The publication of a detailed 25-page impact report alongside the video highlights the foundation's commitment to transparency and accountability. It outlines their various initiatives and the impact achieved, emphasizing community-building and responsiveness to evolving challenges.

The report specifically mentions the Welcome Project, an organization akin to the Hubb Community Kitchen that Meghan previously supported. Their focus on using food to unite people underscores a consistent theme in their charitable endeavors.

The foundation's work extends globally, providing trauma-informed mental health support to earthquake-affected regions like Turkey and Syria and aiding girls in Nigeria with menstrual health education and products. This broad scope of initiatives reflects a commitment to addressing diverse and pressing societal issues.

Meghan and Harry's Archewell Foundation has teamed up with the  Nigeria-based GEANCO Foundation to support schoolgirls in the West African nation

As well as providing backpacks and other school supplies, Archewell and GEANCO are also providing period products 

The Archewell Foundation has provided funds to support schoolgirls in the West African nation as they begin a new term

The foundation's support for recently resettled Afghan women is another testament to their commitment to various causes, including aiding marginalized communities affected by global events.

The release of the polished video and Meghan's appearances at events like Variety's 'Power of Women' gala appear to be efforts to regain or maintain a prominent public profile, showcasing their ongoing work and involvement in high-profile gatherings.

Mark Borkowski, a crisis manager, expresses concerns about the impact of negative publicity on the couple's brand. He suggests that the fallout from Omid Scobie's book and other controversies might have damaged their image, leading to potential repercussions in their Hollywood connections and public perception.

Borkowski's prediction for a seismic shift in 2024 for the couple's brand implies a critical juncture. He suggests that their approach needs a substantial change to recover their public standing or risk further damage to their brand credibility.

Borkowski's perspective hints at a potential disconnect between the couple's aspirations and their reception within the entertainment industry. He suggests that despite their efforts, the negativity surrounding them might hinder their reintegration into certain circles.

Borkowski emphasizes the need for tangible and substantial outcomes from the couple, indicating that promises or hints of big plans need to materialize to restore faith and credibility.

Nick Ede, a brand and culture expert, voices concerns about Meghan's standing in the entertainment industry. He suggests that the allegations and controversies surrounding the book could significantly damage her reputation and potentially affect the reputation of her agency, leading to her becoming 'too hot to handle' for major Hollywood representation.

The comparison drawn between "Endgame" and Prince Harry's memoir, "Spare," implies that the book might have had adverse consequences similar to those faced by Harry after his book release. The suggestion is that the book's revelations have fueled a continuing negative narrative that could be detrimental to Meghan's image and career trajectory.

Ede highlights the challenge for major Hollywood representation in navigating Meghan's career amidst potential future revelations and ongoing legal battles with family members. He suggests that these issues might tarnish her reputation further and make her career path a challenge to manage.

The narrative also continues to emphasize the positive aspects of the couple's philanthropic work through the Archewell Foundation. Their involvement in initiatives like supporting education in Nigeria, aiding military veterans, and contributing to homeless shelters for pregnant women reflects their ongoing commitment to various charitable causes.

Prince Harry and Meghan Markle paid a visit to a Brooklyn school, with the duchess wearing a letterman jacket she was gifted during her last solo engagement as a working royal

The visit came ahead of their appearance at New York City's Hudson Yards for the Archewell Foundation Parents' Summit: Mental Wellness in a Digital Age