The reduction in donor contributions, coupled with operational expenses exceeding $2.6 million, resulted in the foundation operating at a loss for the year, showing a net revenue deficit of minus $674,000. This marked a significant drop from the $9 million net revenue reported in 2021. Questions have arisen regarding the handling of funds, such as the whereabouts of the $10 million undistributed from the previous year and the allocation of expenditures, notably a $57,000 expense for office-related costs despite the absence of a physical office.
Furthermore, scrutiny has been directed towards the substantial $20,000 bonus given to James Holt, the executive director of the Archewell Foundation. Holt, a British national based in Los Angeles, oversees the couple's not-for-profit organization. He initially started with a yearly wage of $47,641, which escalated to an annual salary of $277,000 following the bonus.
James Holt's background includes previous roles within the Royal Family, such as head of communications for both the Cambridges and the Sussexes during his time at the Royal Foundation. He has also contributed to various charities, including Inspiring Girls International and the African Prisons Project. Additionally, Holt has a political background, having served in multiple roles for the Liberal Democrats, including head of communications for the then Deputy Prime Minister Nick Clegg.
It is noteworthy that the IRS has initiated an investigation into Archewell since October 2023, which has raised questions about the foundation's financial practices and its alignment with the couple's philanthropic objectives.
Critics have suggested that Archewell primarily serves as a vehicle for Prince Harry and Meghan Markle to channel their income into a tax-deductible organization while also serving as a positive PR platform. It has been posited that the foundation's purpose appears to revolve around enhancing the couple's public image, rather than focusing on substantial charitable endeavors. Archewell's role, in this view, seems more aligned with being a public relations machine for the couple rather than a vehicle for significant philanthropic impact.
