Prince Harry and Meghan Markle’s Archewell charity has recorded a major loss.

Meghan and Harry set up Archewell in 2020 (Image: GETTY)

Prince Harry and Meghan Markle’s Archwell charity records a humiliating £1.9million loss, new documents have shown. Papers show that the foundation raised around £1.96million but had expenses totalling £3.8million.

The foundation, which rebranded last week, took donations of around £1.6million, gave grants of around £940,000 and retained net assets at around £6.2million. Archewell’s annual informational return, which is known as a 990, was published on Friday.

The documents also showed “revenue less expenses” £1.8million [$2.5m], compared with plus £1.8million [$2.4m] the year before.

In defence of Meghan and Harry, a spokesperson for the couple said the spending was planned and that year-to-year fluctuations are “expected and responsible” in philanthropy.

They also noted that it occured following a period of fundraising and reserve building before deploying the funds on multi-year programs and commitments.

Speaking of the documents, they said: “The $2.5million in-year difference simply reflects the Foundation drawing on existing reserves to fund impact, rather than stockpiling funds.

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

Meghan and Harry have recently announced a rebrand (Image: GETTY)

They added: “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.”

It has also been revealed that three staff members at the Archewell Foundation are being let go following the rebranding under its new name Archewell Philanthropies.