Prince Harry and Meghan Markle’s Archewell Foundation has been listed as delinquent by California’s Registry of Charities and Fundraisers for failing to file required annual tax returns, DailyMail.com can reveal.
According to data from DailyMail.com, the charitable foundation established by the couple with much fanfare in 2020 was declared delinquent in January for failing to submit annual registration renewal or renewal fee reports since February 2023.
The foundation received a notice of delinquency and a warning of fines and late fees earlier this month, along with the threat of suspension or revocation of its registered status from California Attorney General Rob Bonta.
The news casts doubt on an announcement the Duke and Duchess of Sussex made last week when they announced the expansion of a partnership between the GEANCO Foundation in Abuja and the Archewell Foundation during their tour of Nigeria.
Harry and Meghan launched their Archewell Foundation charity in 2020, which has now been declared delinquent
Records show the foundation was declared delinquent in January for failing to file its annual registration renewal or renewal fee reports since February 2023.
But according to the notice to Archewell, dated May 3, “any organization listed as a criminal is not in good standing and is prohibited from engaging in conduct requiring registration, including soliciting or disbursing charitable funds.”
The couple launched the charity four years ago and named it in honor of their son Archie
The warning continues: ‘The organization may also be subject to sanctions and its registration may be suspended or revoked by the registry.’
DailyMail.com understands that the foundation claims the check was inadvertently bounced when the report was filed and has sent a new one in the hope of quickly resolving the issue.
According to CharityWatch, tax returns released by Archewell in December 2023 show that the nonprofit suffered an $11 million decline in donations in 2022 compared to the year before.
The data showed that the charity received just over $2 million in charitable donations in 2022, compared to $13 million in 2021.
And while Archewell had reported revenues of more than $9 million in 2021, its December 2023 filings showed it had suffered a loss of more than $674,000 in 2022 due to costs of $2.67 million.
That same month, it emerged that Archewell’s executive director, James Holt, Sussex’s UK PR chief, earned a salary of $277,405, including a $20,000 bonus in 2022. That represents a 280% increase on his salary of less than $60,000 in 2021, the organization’s first year. in operation.
Holt’s 2021 salary did not reflect the full 12 months of work as he joined mid-year, it is understood.
When the couple launched their charity four years ago in honor of their son Archie, now 5, Harry, 39, and Meghan, 42, said the “core purpose” was “simply to do good.”
Their mission statement is: “We rise to the moment by showing up, taking action, and using our unparalleled spotlight to uplift and unite communities locally and globally, online and offline.”
They claimed that their “three core pillars” are “building a better online world, rebuilding trust in information, and above all, uplifting communities.”
But CharityWatch, founded as the American Institute of Philanthropy in 1992 and the only independent charity watchdog in the United States, says Archewell has “inadequate governance and transparency.”
In 2021, the charity had reported revenues of more than $9 million, but a December 2023 filing showed the charity was in the red by more than $674,000 in 2022.
Harry and Meghan’s foundation is now banned from raising or disbursing charitable funds
The watchdog notes that while the charity reports a total of five ‘Officers, Directors, Trustees, Key Employees and Highest Compensated Employees’, it reports only two board members: ‘Meghan, The Duchess of Sussex and ‘Prince Harry, The Duke of Sussex . .’
The organization said: “This is not consistent with generally accepted best practices in the United States for nonprofit boards, which generally recommend a minimum board size of five to seven members.”
And while charities operating in California are only required to have one board member, “the IRS strongly encourages at least three directors on their boards.”
They state: ‘Small boards run the risk of not representing a sufficiently broad public interest and of not having the requisite skills and other resources needed to manage the organization effectively.’
CharityWatch requested Archewell’s most recent IRS Form 990 and audited its financial statements in January, but that request went unanswered, preventing the watchdog from reviewing it.