In a recent live stream, viewers sparked a heated discussion about whether Meghan Markle is using her Archwell Foundation as a front for money laundering.
This theory has been circulating for a while, prompting host Steph, known as the Alternerd, to invite her friend John Witherspoon, a DC lawyer, to weigh in on the matter.
The conversation aimed to dissect the plausibility of such claims and what the legal implications might be.
Steph kicked off the video by reflecting on the lively chat during her live stream, where many participants voiced their suspicions regarding the foundation’s financial dealings.
Intrigued by these allegations, she sought John’s expertise to explore if there’s any merit to the idea that Archwell could be misused for illicit financial activities.
John began his analysis by explaining that while it is theoretically possible for someone to mismanage funds within a nonprofit organization, doing so without getting caught is highly unlikely, especially for an entity under intense public scrutiny like Archwell.
He noted that the foundation had previously faced media attention over filing issues with the state of California, which further complicates the idea of any wrongdoing.
The lawyer emphasized that the IRS requires nonprofits to file detailed Form 990s, which disclose their financial activities.
This requirement is designed to ensure transparency about where donations come from and how they are spent.
John pointed out that any attempt to conceal financial misconduct would likely be exposed due to the level of oversight mandated for nonprofits.
John elaborated on the specific requirements of Form 990, highlighting that organizations must report expenses meticulously.
For example, if board members travel first class or use private jets, this must be disclosed.
This level of scrutiny serves to prevent misuse of funds, making it difficult for anyone, including high-profile figures like Meghan and Harry, to hide questionable financial practices.
As the conversation progressed, John directed attention to Archwell’s 2022 Form 990, emphasizing Part Nine, which details functional expenses.
He explained that a well-managed charity should ideally spend no more than 25-30% of its revenue on administrative costs.
This ensures that the majority of funds go toward fulfilling the organization’s mission rather than lining pockets.
John noted that it typically takes about three years for a nonprofit to establish a clear financial pattern, and while Archwell has only filed two years’ worth of data, future filings will reveal more about its fiscal health.
He expressed skepticism over the notion that the foundation is mismanaged, especially given the public nature of its finances.
Interestingly, he pointed out that both Meghan and Harry are the only directors listed on Archwell’s board.
This unusual structure raises eyebrows, as most charities have a broader board to avoid conflicts of interest.
John suggested that adding more independent members could help mitigate criticism and enhance the foundation’s credibility.
During the discussion, the pair also touched on the couple’s claim of dedicating just one hour a week to Archwell.
While this raised questions among observers, John clarified that, according to their statements, they do not draw a salary from the foundation, which is commendable if true.
However, he acknowledged the potential for financial arrangements that could be less than transparent.
John highlighted that while loopholes exist in nonprofit accounting, it’s crucial for organizations to maintain integrity in their financial reporting.
He mentioned hypothetical scenarios where expenses might be misclassified, but stressed that these are not necessarily indicative of wrongdoing.
As the video wrapped up, Steph and John aimed to clarify the ongoing rumors surrounding Meghan and Harry’s financial practices.
They reiterated that while speculation can be intriguing, the evidence does not support the idea that Archwell is being used for money laundering.
This engaging discussion provided viewers with insights into the complexities of nonprofit financial management and the challenges faced by high-profile organizations like Archwell.
As the couple continues to navigate their public lives, the scrutiny surrounding their foundation remains a hot topic, prompting ongoing debate and speculation.
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