Biden Family Charity Accused of $500K Tax Omission

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Ashley Biden’s charity is under fire after a watchdog group filed an IRS complaint alleging the organization failed to report $500,000 in donations, raising questions about financial oversight and potential consequences for the former First Daughter’s nonprofit.

Quick Takes

  • Ashley Biden’s Women’s Wellness Spa(ce) allegedly failed to disclose $500,000 in donations on its 2023 tax filing, including $250,000 each from Meghan Markle and Prince Harry’s Archewell Foundation and the Silicon Valley Community Foundation.
  • The National Legal and Policy Center filed an IRS complaint claiming the charity only reported $170,296 in total contributions despite receiving the larger grants.
  • Ashley Biden signed the tax filing under penalty of perjury, which did not disclose any contributions over $5,000.
  • The charity’s accountant claims the grants were pledged in 2023 but distributed in 2024, while watchdogs argue they should have been reported in 2023 under accrual accounting rules.
  • The complaint also alleges Ashley Biden overreported her work hours and failed to disclose all board members in the charity’s tax return.

Missing Donations Raise Red Flags

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 in 2023. The watchdog group alleges that the nonprofit failed to report approximately $500,000 in donations on its federal tax filings. According to the complaint, the organization received $250,000 each from the Archewell Foundation, established by Prince Harry and Meghan Markle, and the Silicon Valley Community Foundation, but only reported $170,296 in total contributions for the 2023 tax year.

“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 National Legal and Policy Center.

The situation is particularly concerning because Ashley Biden personally signed the charity’s 2023 tax filing under penalty of perjury. The document did not disclose any contributions over $5,000, despite the substantial donations from high-profile sources. The NLPC has requested a full IRS audit to determine if other grants went unreported and to assess potential violations of federal tax law that could jeopardize the organization’s tax-exempt status.

Accounting Discrepancy or Deliberate Omission?

The charity’s accountant, Greg Mangasarian, offered an explanation for the apparent discrepancy, stating that “The Women’s Wellness Space received $150,000 in 2023 and will report the balance in 2024.” This suggests that while the grants may have been pledged in 2023, the charity claims much of the money was distributed the following year. However, the watchdog group argues that under the accrual accounting method that nonprofits typically use, the full amount should have been reported in 2023 when the commitments were made.

“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,” said NLPC Counsel Paul Kamenar.

The NLPC complaint also notes that Archewell’s own 2023 tax filings clearly show the $250,000 donation to Women’s Wellness Spa(ce), marking it as the largest grant from the organization that year. This contradicts the reporting on Ashley Biden’s charity’s tax forms and raises questions about proper financial management and transparency within the organization.

Additional Concerns About Operations

Beyond the alleged financial reporting issues, the complaint raises additional concerns about the charity’s operations. The NLPC claims Ashley Biden may have overreported her work hours, stating on tax forms that she worked 40 hours per week at the nonprofit while earning a relatively low salary. Given her involvement in other activities and reported foreign travel during this period, watchdog groups question whether this time commitment is accurate.

“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 complaint also alleges discrepancies in board member listings and notes the charity’s limited online presence, primarily through an Instagram account. Women’s Wellness Spa(ce) was established to provide wellness resources for women who have experienced trauma, including guided meditation and therapy. According to the Archewell Impact Report, the center “aims to offer a safe haven and community for women impacted by trauma, providing resources such as nutritious food, exercise, meditation, and therapeutic interventions.”

Political Motivations Questioned

The source of the large donations has also drawn scrutiny, particularly the $250,000 from Meghan Markle and Prince Harry’s foundation. Some observers, including the Margaret Thatcher Center for Freedom at the Heritage Foundation, have suggested the donation deserves “significant scrutiny” given the potential political implications. The timing and size of the contribution has led to speculation about whether it was intended to curry favor with the Biden family during Joe Biden’s presidency.

“The large contribution raised eyebrows because of the political implications of Prince Harry and Meghan Markle’s attempts to ingratiate themselves with President Biden and his family,” Kamenar said.

The NLPC’s complaint marks the second time the watchdog group has flagged concerns about Ashley Biden’s charity. A previous IRS complaint alleged similar reporting issues. As the IRS considers these complaints, the charity faces growing pressure to provide clarity about its financial reporting practices and address questions about its operational transparency that could impact its future as a nonprofit organization.

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