Donations to Prince Harry and Meghan Markle’s Archewell Foundation drop by $17.9 million

The Duke and Duchess of Sussex's Archewell Foundation has taken a financial hit. Photo / AP

The Duke and Duchess of Sussex’s foundation has brought in US$11 million ($17.93m) less in annual donations compared with its first year, its annual financial report shows.

The Archewell Foundation brought in US$2m ($3.26m) in contributions and grants in 2022, with two donations of US$1m ($1.63m) from two anonymous individuals.

The foundation recorded a loss of US$674,485 ($1.1m) last year as revenue was US$2m but costs were US$2.67m ($4.35m). The year before, Archewell brought in US$13m ($21.2m) and spent US$3m ($4.89m) in charitable grants.

It has given out US$1,252,895 ($2.04m) in donations, highlighting 38 causes, 19 of which have received financial support. The causes range from racial bias in the American judiciary system to online misinformation.

The largest grant was made to the US’ Georgetown University. It received US$200,000 ($326,248) for a project to help “educate” judges, medical students, teachers and police on how they can overcome harmful biases towards black women.

‘Not unusual’

A spokesman said it was “not unusual” for high-profile foundations to receive an influx of funding in the first year. It was “fiscally responsible not to continue to raise large sums of money with millions still in reserve”, they added.

It is understood the foundation’s team and scope have grown since the first year, requiring more expenditure on staff and events.

Its annual tax report, filed with the US Internal Revenue Service (IRS) and made public today, gave a detailed breakdown of incoming and outgoings at the non-profit organisation.

It paid US$640,411 ($1.05m) in salaries, US$57,277 ($93,426) in office expenses and US$34,475 ($56,233) for travel. Event costs totalled US$25,087 ($40,908).

By the end of the financial year, Archewell had US$8.3m ($13.53m) in savings and temporary cash investments.

The Duke and Duchess of Sussex, listed as directors, are registered as performing an average of one hour of work per week.

Executive director James Holt, co-executive director Shauna Nep and senior strategic adviser Michael Dale Stein - also named as the “highest-compensated employee” - work 40 hours and receive US$227,405 ($370,819), US$92,994 ($151,641) and US$140,116 ($228,480) respectively.

The Duke and Duchess of Sussex have released a one-minute video for their followers detailing Archewell's "impact" this year. Photo / AP

In a breakdown of grants given out by Archewell, two have been made to “Europe”, both relating to battling misinformation: one of US$68,895 ($112,345) and US$50,000 ($81,513).

Archewell is working with the Georgetown Centre on Gender Justice and Opportunity to train American judges in how to rethink “harmful gender stereotypes, especially those affecting black women and girls”.

Next year, the training programme will roll out across the US to further help “medical students and professionals, law enforcement and educators”.

Another US$165,000 ($268,993) was given to help build a new playground in Uvalde, Texas following a school shooting, in partnership with a charity called Kaboom!

US$125,000 ($203,782) was sent to the NAACP, the racial justice organisation which gave the Sussexes a civil rights award in 2022 for their empowerment programmes.

In a link to the Sussexes’ life in Britain, US$50,000 ($81,513) was given to Wellbeing International “to improve canine welfare”. The charity has links to The Mayhew in London, an animal welfare charity with which the Duchess held a three-year patronage.

A separate report highlighting the impact the foundation is having on the causes it supports, referred to as the “Impact Report”, has also been released alongside a professional one-minute video showing the Duke and Duchess meeting delighted members of the public throughout the year.

While the couple have shared similar videos in the past, they’re usually not released until early January in order to fully showcase the events of the preceding year.

Social media users noted the video, which features the Archewell team packing items at a baby bank, came shortly after Kensington Palace released a video of the Princess of Wales and her three children volunteering at a baby bank.

Other Archewell projects focus on supporting refugee women and families through a version of the Grenfell Tower Hubb Community Kitchen, as well as hosting a parents’ summit and insight sessions about the harm caused by social media.

An unaudited figure for 2023, seen by the Telegraph, suggests the foundation’s revenue rose again to US$5m ($8.15m) in its third year, with it giving out another US$1.2m ($1.96 million) in grants to leave total savings of US$11.2m ($18.26m). The figures will be confirmed in the 2023 Form 990, an IRS form due to be published in a year’s time.

A spokesperson said it expected grants to “level out” around US$1.2m ($1.96m) in the coming years. Outlining its mission, the Impact Report says: “At the Archewell Foundation, we believe in striving for greater inter-connectedness and its ability to transcend division. We believe in the pursuit of finding purpose, belonging and joy, and are dedicated to helping as many people as possible to achieve it.” It adds: “We are committed to a simple but profound mission – to show up and do good.”

Archewell’s work has been grouped into three themes this year: “Uplifting Communities”, “Building a Better Online World” and “Restoring Trust in Information”.