Prince Harry and Meghan Markle

Maanya Sachdeva, The Independent

Prince Harry and Meghan Markle’s Archewell Foundation has spiralled into the red as it suffered a donations plunge of nearly £10m in a year. The couple’s charity — named after their four-year-old son Archie and established in 2020 after the pair’s so-called “Megxit” resignation as senior members of the royal family – also handed its executive director James Holt, considered one of Harry’s right-hand men, a massive 280 per cent pay rise.

An income tax return filed in the US has revealed that in 2022 donations had dipped to just over £1.6m – an astonishing plunge of £8.7m on the £10.3m it was gifted in 2021. The Sussexes released their charity’s annual report and a glitzy promotional film showing their good works this year, but it was marred by the loss in donations. It can also be revealed the foundation’s 2021 profit of £7.1m has evaporated due to a lack of donations. Harry and Meghan’s foundation, which employed five people, recorded a loss of £536,357 due to the huge shortfall in donations. Revenue was recorded at £1.6m, while costs were £2.13m.

Harry, 39, and his ex-actor wife, 42, did not take a salary but its executive director Holt was paid £181,255-a-year, including a £15,904 bonus. The sum was a huge pay rise of around £133,000, up from  Holt’s starting salary of £47,641 the previous year. In 2022, there were only two major donors giving around £795,210 each to the charity.

The year before, an unidentified donor gave them £7.8m but there was no repeat of that staggering generosity in 2022. Despite last year’s loss, it appears the foundation – described as a non-profit organisation — still holds around £6.6m in cash and assets.

Archewell said it was not unusual for high-profile foundations to receive a significant influx of funding in its first year to be used over several years as part of a financial plan to build its philanthropic work. It added: “It is most fiscally responsible not to continue to raise large sums of money with millions still in reserve.

“In 2022, (The Archewell Foundation) focused on building out original programming that successfully launched in 2023.

“The Archewell Foundation is grateful for such a successful year and looks forward to continued growth in 2024.” On Tuesday (12 December), Archewell released a 28-page “impact statement” highlighting the various causes it supports as well as its latest income tax filing.

Along with the finances, the Sussexes, who also have a two-year-old daughter named Lilibet, unveiled a one-minute Archewell clip showing people and causes their foundation has helped throughout the year. It came hours after Princess Catherine, 41, shared a clip with her three children — Princes George, 10, and Louis, five, as well as eight-year-old Princess Charlotte — at a baby bank in Windsor. Hers saw the royal being helped by her trio of kids to sort through presents for children in need.

Footage from 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 staged for expectant mothers experiencing homelessness. It also featured her calling a young entrepreneur alongside Harry. The slick clip was soundtracked to the song “Happy Place” by Glaswegian brother duo SAINT PHNX, with the video featuring the lyrics from the tune: “Over the hills and far away, looking out for a better day, when it seems like there’s no escape, take me to my happy place.” Archewell’s impact report highlighted projects aimed at helping resettled Afghan women in the US develop stronger social ties to their communities as well as combatting misinformation online.