Ashley Biden Charity Faces Heat Over $500K Disclosure Fail

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Ashley Biden’s charity faces serious allegations of failing to disclose $500,000 in donations to the IRS, potentially violating federal tax laws and raising questions about financial transparency in organizations connected to prominent political families.

Key Takeaways

  • Ashley Biden’s Women’s Wellness Spa(ce) allegedly failed to report $500,000 in donations to the IRS, including $250,000 each from Meghan Markle’s Archewell Foundation and the Silicon Valley Community Foundation.
  • The charity reported only $170,296 in total contributions for 2023 despite evidence of much larger donations, according to a complaint filed by the National Legal and Policy Center.
  • Ashley Biden signed the charity’s 2023 tax filing under penalty of perjury, which failed to disclose any contributions over $5,000, raising potential legal issues.
  • The donations from Meghan Markle and Prince Harry have sparked speculation about potential political motivations to curry favor with the Biden family.
  • This complaint follows previous allegations that Ashley Biden overreported her work hours and failed to disclose all board members in the charity’s 2023 tax return.

Tax Filing Discrepancies Spark IRS Complaint

The National Legal and Policy Center (NLPC) has filed a formal complaint with the IRS against Women’s Wellness Spa(ce), a charity founded by Ashley Biden, daughter of Joe Biden. The watchdog group alleges that the organization failed to disclose approximately $500,000 in donations on its 2023 tax filings. According to documents cited in the complaint, the charity received $250,000 each from the Archewell Foundation, established by Prince Harry and Meghan Markle, and the Silicon Valley Community Foundation.

“Ashley Biden’s failure to disclose to the IRS receiving $500,000 in grants in 2023 raises the question of what other contributions is she hiding,” said Paul Kamenar, counsel for the NLPC, in a statement that has intensified scrutiny of the charity’s financial practices.

Despite these substantial donations, the organization’s 2023 Form 990 reported only $170,296 in total receipts for the year. The filing, signed by Ashley Biden under penalty of perjury, did not disclose any contributions exceeding $5,000, which the NLPC argues is a direct violation of IRS requirements for nonprofit organizations. The discrepancy has prompted calls for a comprehensive audit to determine if other grants went unreported.

Charity Defends Financial Reporting Practices

In response to the allegations, Greg Mangasarian, an accountant representing Women’s Wellness Spa(ce), stated that “The Women’s Wellness Space received $150,000 in 2023 and will report the balance in 2024.” This explanation suggests that while the donations were pledged in 2023, the organization only physically received a portion of the funds that year, with the remainder distributed in 2024.

“Ms. Biden failed to report the receipt of a grant of $250,000 made in 2023 by the Archewell Foundation, founded by Prince Harry and Meghan Markle. In addition, there are other reporting violations by Ms. Biden, including failing to identify all of the Board of Directors of her nonprofit,” stated NLPC Counsel Paul Kamenar in the official complaint filed with tax authorities.

The NLPC, however, contends that under accrual-based accounting methods, which many nonprofits employ, the full amounts should have been reported in the year they were committed, regardless of when the actual cash was received. The complaint specifically questions whether the charity is properly applying accounting principles required by federal tax laws governing nonprofit organizations.

Questions About Political Connections and Motivations

The substantial donation from the Duke and Duchess of Sussex’s foundation has raised additional concerns beyond mere accounting practices. According to the NLPC complaint, the timing and size of the contribution merit examination for potential political motivations. The Archewell Foundation’s 2023 tax filings revealed that the donation to Women’s Wellness Spa(ce) represented its largest grant that year.

“This large contribution raised eyebrows because of the political implications of Prince Harry and Meghan Markle’s attempt to ingratiate themselves with President Biden and his family. But more importantly, the $250,000 cash grant made in 2023 was not reported on Ashley Biden’s group’s 2023 Form 990, which only reported receiving a total of $170,296 that year. A full audit of Ashley Biden’s group is warranted to determine where the $250,000 cash grant was deposited and its disposition,” stated a complaint by NLPC Counsel Paul Kamenar.

The Margaret Thatcher Center for Freedom at the Heritage Foundation has noted that the donation deserves “significant scrutiny” given the political connections involved. Critics suggest the donation could be viewed as an attempt to build influence with the Biden family rather than purely philanthropic support for the charity’s stated mission of providing wellness resources for women who have experienced trauma.

Additional Concerns About Operations and Transparency

Beyond the financial reporting issues, the complaint raises questions about Ashley Biden’s reported work hours and compensation structure. According to the charity’s tax filings, Biden reported working 40 hours per week for the organization while receiving minimal compensation. The NLPC suggests this claim may be exaggerated given her involvement in other activities, including foreign travel documented during the same period.

“The IRS must conduct a full investigation and audit of Women’s Wellness Space, including deposing Ashley Biden, to find out what happened to the $250,000 given to Ms. Biden’s group from the Archewell Foundation and to assess appropriate civil and criminal penalties because Ms. Biden submitted and signed the Form 990 under penalty of perjury,” said NLPC Counsel Paul Kamenar.

The charity, launched in 2023, has maintained a limited online presence, primarily through an Instagram account, which has added to concerns about operational transparency. According to Archewell’s Impact Report, the organization aims “to offer a safe haven and community for women impacted by trauma, providing resources such as nutritious food, exercise, meditation, and therapeutic interventions.” Whether these noble goals are being properly supported by appropriate financial management remains at the heart of the investigation.

Sources:

  1. Ashley Biden’s Charity Failed To Disclose $500,000 in Donations to IRS, Complaint Alleges
  2. IRS Complaint Filed Against Ashley Biden; What Happened to Prince Harry’s $250K? – National Legal And Policy Center
  3. Joe Biden’s daughter Ashley referred to IRS over Meghan Markle’s $250,000 donation to her non-profit