Oprah Stops Funding Archwell as Meg Pocketed £10m: New Tax Report Reveals

A recent tax report has shed light on the funding situation of Archwell, the foundation established by Meghan Markle and Prince Harry.

The report indicates that Oprah Winfrey has ceased her financial support for the organization, resulting in a significant drop in donations.

It has also been revealed that Meghan Markle herself pocketed £10 million from the foundation.

After facing intense criticism, Archwell Foundation published its 990 tax form for 2022.

On its website, the foundation stated, “We believe that philanthropic work is more than a handout, it's a handheld.”

They emphasized their commitment to creating impactful programming and partnering with key organizations and leaders to address immediate needs and drive long-term change in communities.

According to the tax report, there has been a drastic decrease in donations, with only £2 million received this year compared to £11 million in the previous year.

This represents an 81% drop, largely attributed to Oprah Winfrey's decision to stop contributing.

Additionally, the report highlights a 60% increase in non-grant-making expenses, primarily due to higher employee costs.

It has been discovered that some employees of Archwell worked for both the profit and non-profit branches of the organization.

As funds dwindled in their for-profit ventures, such as Spotify and Netflix, these employees are now primarily paid by the non-profit branch.

However, as the foundation's financial resources continue to diminish, it raises concerns about the sustainability of their current workforce.

In 2022, contributions received by Archwell accounted for only 15% of the funds received in the previous year, and grants made decreased by over 50%.

Notably, non-grant-making expenses rose from $890,000 in 2021 to $1.4 million in 2022, with a significant portion attributed to higher employee expenses.

Employee-related costs increased from $163,000 in 2021 to $640,000 in 2022.

The tax report also reveals the addition of two key employees in 2022: Michael Dale Stein, Senior Strategic Advisor, and Shauna Knapp.

They joined James Holt, who has served as Executive Director since 2021.

The necessity of three full-time employees with a combined salary and compensation of nearly half a million dollars raises questions, especially considering the relatively modest donations received by the foundation.

Furthermore, payments to independent contractors increased from $325,000 in 2021 to $428,000 in 2022.

Notably, Invisible Hand appears as an independent contractor in both years.

This raises concerns about the foundation's contracting business model and the rationale behind increasing their cost structure.

Interestingly, the whereabouts of the £10 million lump sum received by Archwell last year remain undisclosed in the tax report.

Speculation suggests that the funds may have been directed towards personal use by Meghan Markle and Prince Harry.

Additionally, there were no donations listed from Victor's or Wellchild, raising questions about their patronage and the need for further investigation into potential money laundering activities.

The report also highlights discrepancies in the foundation's support of various organizations.

While Humanity Crew and Harvest Home are featured in the impact report, their actual donations amount to less than $5,000.

Notably, World Central Kitchen, which received significant funding from Archwell in 2021, is absent from both the impact report and the Form 990 for 2022.

It remains unclear why this shift in support has occurred.

As the financial situation of Archwell continues to raise eyebrows, it is evident that the foundation is facing significant challenges.

The decrease in donations, coupled with the increase in non-grant-making expenses, calls into question the organization's financial management.

With ongoing scrutiny, it remains to be seen how Archwell will address these concerns and ensure the sustainability of its philanthropic endeavors moving forward.