Prince Harry and Meghan Markle’s Archewell foundation saw a £1.9million loss last year (Image: Getty)

Prince Harry and Meghan Markle’s Archewell foundation recorded a £1.9million loss last year. The Duke and Duchess of Sussex’s Beverly Hills-based not-for-profit accepted £1.56million ($2.1 million) worth of donations and notched up expenses of £3.8m ($5.1m). The total amount allocated in grants in 2024 was £932,000 ($1.25 million).

The foundation’s figures were reported on its Form 990 tax return, which was made public on Friday. Submitted annually, the return is filed with the US Internal Revenue Service by most tax-exempt organisations, charitable trusts and political bodies.

Prince Harry and Meghan Markle’s foundation has also changed its name (Image: Getty)

The filing shows contributions and grants dropped last year, standing at £1.56m ($2.1m), down from £3.95m ($5.3m) in 2023.

“[R]evenue less expenses” were recorded at minus £1.86m (-$2.5m), compared with plus £1.78m (+$2.4m) the year before.

A spokesperson for the Duke and Duchess said fluctuations between years were “expected and responsible.”

They told The Sun: “The $2.5million in-year difference simply reflects the Foundation drawing on existing reserves to fund impact, rather than stockpiling funds.

“This was an intentionally missing-aligned decision demonstrating Archewell’s commitment to putting dollars to work in the world and maximising social return on past fundraising efforts.

“The Foundation did not lose money – it used previously raised funds for their intended purpose. The Archewell Foundation’s approach is to raise funds for specific projects and deploy them as those projects reach key stages of implementation.”

Harry and Meghan’s charity announced on Friday (December 19) that it would change its name to Archewell Philanthropies as it marked five years since its founding.

The Sussexes established the Archewell Foundation after stepping down from their royal duties and relocating to North America in 2020. Its mission statement is “Show up, do good”.

This year, the charity has advocated for safer digital spaces and the responsible development of artificial intelligence (AI). It has also funded support for children affected by conflict in Gaza and Ukraine.

A spokeswoman for Harry and Meghan said the next chapter allows Harry and Meghan to broaden their global philanthropic efforts as a family, with meaningful reach and maximum impact, grounded in the same values, partnerships, and their commitment to show up and do good.

Harry and Meghan are directors of the Foundation, but neither draws a salary from it.

The Daily Mail, which first reported the figures, states that three members of the Foundation’s staff are to leave as part of a restructuring.

A spokesperson for the Sussexes said at present the same full team remained in place, but the move meant some staff redundancies were inevitable, especially junior admin roles.

Prince Harry and his wife have said Archewell Philanthropies will carry on being fully charitable, tax-deductible and IRS-compliant.

The newly named outfit would also continue its focus on supporting initiatives around mental health, responsible technology and community wellbeing.