Prince Harry and Meghan Markle's Archewell Foundation has gone into the red after suffering a drop in donations of almost £10 million in a year.
The couple's charity – named after their four-year-old son, Archie, and created in 2020 following the couple's so-called “Megxit” resignations as senior members of the royal family – also handed over to its chief executive James Holt, considered one of the Harry's right-wingers. workforce, a huge 280 percent wage increase.
A tax return filed in the US revealed that in 2022 donations fell to just over £1.6 million – and a surprising fall of £8.7 million on the £10.3 million that was donated in 2021. The Sussexes released their charity's annual report and a flashy promotional film showing their good work this year, but it was hurt by the loss of donations.
It can also be revealed that the foundation's 2021 profit of £7.1 million evaporated due to a lack of donations.
Harry and Meghan's foundation, which employed five people, recorded a loss of £536,357 due to a huge shortage of donations. Revenue was recorded at £1.6 million, while costs were £2.13 million.
Harry, 39, and his ex-actor wife, 42, were not on salary but their chief executive, Mr Holt, was paid £181,255 a year, including a bonus of £15,904.
The sum represented a huge pay rise of around £133,000, up from Holt's starting salary of £47,641 the previous year.
As of 2021, there are only two major donors donating around £795,210 each to the charity.
The previous year, an unnamed donor gave them £7.8 million, but there has been no repeat of that impressive generosity in 2022.
Despite last year's loss, it appears the foundation – described as a non-profit organization – still holds around £6.6m in cash and assets.
Archewell said it is not uncommon for high-profile foundations to receive a significant influx of funding in their first year, to be used over several years as part of a financial plan to develop their philanthropic work.
He added: “It is of utmost fiscal responsibility not to continue raising large sums of money with millions still in reserve.
“In 2022, (The Archewell Foundation) focused on building original programming successfully launching in 2023.
“The Archewell Foundation is grateful for such a successful year and looks forward to continued growth in 2024.”
On Tuesday (December 12), Archewell released a 28-page “impact statement” highlighting the various causes it supports, as well as its latest tax return.
Along with the finances, the Sussexes, who also have a two-year-old daughter named Lilibet, revealed a minute-long Archewell clip showing people and causes their foundation has helped throughout the year.
It came hours after Princess Catherine, 41, shared a clip of her three children – Princes George, 10, and Louis, five, as well as eight-year-old Princess Charlotte – on a baby bench in Windsor. Hers saw the royal being helped by her trio of children to sort out gifts for children in need.
Footage of Meghan's visit to the Fisher House Foundation in Los Angeles was included in the Archewell video, showing her hugging people and volunteering at a pop-up baby boutique she set up for pregnant women experiencing homelessness. It also showed her calling a young businessman alongside Harry.
The stylish clip was soundtracked by the song “Happy Place” by Glasgow sibling duo SAINT PHNX, with the video featuring the song's lyrics: “Over the hills and far away, looking for a better day, when it feels like there's no escape, take me to my happy place.
Archewell's impact report highlighted projects aimed at helping Afghan women resettled in the US develop stronger social ties with their communities, as well as combating misinformation online.
His latest financial reports were also released a day after a judge ordered Harry to repay the amount. Mail on Sunday publisher, Associated Newspapers Limited, £48,000 in legal costs as part of its ongoing libel battle.
The sentence was imposed after Harry attempted to reject part of the ANL's defense linked to a February 2022 article about his conflict with the Home Office over the decision to remove his automatic police protection after he resigned from senior royal job duties. ANL argued that the article expressed an “honest opinion” and did not cause “serious harm” to Harry’s reputation.
The duke fought to have the “honest opinion” defense rejected, but in a judgment on Friday, High Court judge Mr Justice Nicklin ruled it could be included and the case should go to trial.
He ruled that the publisher had a “real prospect” of defending its case and as a result Harry was ordered to pay the newspaper's costs of £48,447 by December 29.