Ashley Biden’s Charity Accused of Failing to Report $500,000 in Donations; IRS Complaints Filed

The nonprofit founded by Ashley Biden, the daughter of President Joe Biden, is at the center of a mounting controversy after being accused of failing to report $500,000 in charitable donations. A conservative watchdog organization, the National Legal and Policy Center (NLPC), has filed two formal complaints with the Internal Revenue Service (IRS), alleging that Women’s Wellness Spa(ce), a Philadelphia-based trauma recovery center, concealed large financial gifts from two high-profile benefactors including a $250,000 grant from Meghan Markle and Prince Harry’s Archewell Foundation.

The complaints raise questions not only about potential violations of federal tax law but also about transparency and oversight within an organization closely linked to the Biden family. The IRS has not yet commented on whether an investigation will be launched.

Background: What Is Women’s Wellness Spa(ce)?

Launched in mid-2023, Women’s Wellness Spa(ce) was created by Ashley Biden with a mission to serve women in the Philadelphia area recovering from trauma, especially those impacted by incarceration, poverty, and systemic barriers. The facility offers therapy, wellness treatments such as infrared saunas, and holistic support designed to promote reintegration and healing. Ashley Biden has been active in public health and criminal justice reform for over a decade and launched this initiative to provide community-based care for women in underserved communities.

Women’s Wellness Spa(ce) received attention shortly after its opening, not only due to Biden’s high-profile connections but also because of its partnerships with progressive philanthropies. However, it’s these very partnerships that are now drawing scrutiny.

The Allegations: $500,000 Allegedly Missing from IRS Filings

The first IRS complaint, filed in March 2025, alleges that Biden’s charity failed to disclose a $250,000 grant from the Archewell Foundation on its 2023 tax return, also known as Form 990. A second complaint filed on April 21 points to another $250,000 donation made by the Silicon Valley Community Foundation (SVCF). Together, the watchdog claims these grants were omitted despite being pledged and partially or fully delivered in 2023.

The IRS requires that nonprofits operating under accrual accounting report all pledged contributions in the year they are committed, regardless of when the funds are received. According to its filings, Women’s Wellness Spa(ce) uses accrual accounting. Nonetheless, the organization’s 2023 Form 990 reported just $170,296 in total contributions and claimed no single donation exceeded $5,000, a figure that directly contradicts public grant disclosures by Archewell and SVCF.

Meghan Markle and Prince Harry’s Archewell Foundation Involved

The Archewell Foundation, co-founded by Meghan Markle and Prince Harry, publicly disclosed in its 2023 Impact Report that it made a $250,000 grant to Women’s Wellness Spa(ce). That report was released in February and highlighted the grant as part of Archewell’s initiatives for mental health and social reintegration. According to NLPC counsel Paul D. Kamenar, that disclosure alone should have triggered a corresponding entry on Women’s Wellness Spa(ce) ‘s own IRS form.

“The law is clear: under accrual accounting rules, this grant must be reported in the year it was pledged, not when the check was cashed,” said Kamenar.

Second Donation: Silicon Valley Community Foundation

The second IRS complaint includes documents showing that the Silicon Valley Community Foundation, one of the most significant charitable funds in the United States, also pledged $250,000 to Women’s Wellness Spa(ce) in 2023. The foundation’s Form 990 lists the donation on Schedule I.

Yet, as with Archewell, Biden’s nonprofit reported no such contribution.

“The pattern is troubling,” said Kamenar. “This is not a clerical error. These are two six-figure grants from major institutions, both of which were conveniently omitted from the tax filings of the president’s daughter’s nonprofit. We believe there is a clear case of misreporting that requires immediate IRS investigation.”

Complete Statement from the Charity’s Accountant

Greg Mangasarian, the accountant for Women’s Wellness Spa(ce), provided a statement to The Washington Free Beacon, defending the nonprofit’s reporting.

“Both Archewell and the Silicon Valley Community Foundation pledged their grants in 2023, but Women’s Wellness Spa(ce) only received partial funding from Archewell in that calendar year, specifically $150,000. The remainder of that grant, and the full SVCF amount, were scheduled for disbursement in 2024. Our reporting is accurate and fully compliant with IRS regulations, as we disclose funds when they are received, not when pledged. We will include all subsequent disbursements in our 2024 Form 990. Any claim that we intentionally misrepresented our finances is categorically false.”

Mangasarian added that the organization was fully committed to transparency and would cooperate with any review or audit.

Legal Standards: What Does the IRS Require?

According to federal guidelines, nonprofit organizations that use accrual accounting must report grant pledges in the year they are made, not the year they are received. Additionally, contributions exceeding $5,000 must be itemized on Schedule B of the 990 form, along with the donor’s name and the specific amount given.

Failing to report these grants may subject the organization to civil penalties, fines, or even criminal liability if fraud is determined. Watchdog groups have called for a full audit and potential IRS enforcement actions if wrongdoing is found.

Political Implications and Public Scrutiny

The Biden administration has not commented on the matter. However, political analysts note that any IRS probe into the president’s daughter could carry significant political weight, especially as the 2024 campaign season heats up. Meghan Markle’s involvement has also sparked a new round of speculation about the political alignments of the Sussexes, who have been active in American philanthropy and social justice advocacy since stepping back from their royal duties in 2020.

“There are obvious ethical concerns here,” said Kamenar. “We’re talking about a grant from Meghan Markle, a celebrity with political influence, to the daughter of the sitting president, and then that money doesn’t show up in the charity’s books. That deserves scrutiny.”

What’s Next: Will the IRS Take Action?

The National Legal and Policy Center is urging the IRS to audit Women’s Wellness Spa(ce) immediately. If the agency agrees, it could compel amended filings and assess penalties. However, the IRS has not confirmed whether it will open an inquiry.

For now, the Biden nonprofit faces growing public pressure and demands for accountability from both sides of the aisle.

“This isn’t about politics,” said Kamenar. “This is about public trust, financial transparency, and the rule of law.”

This is a developing story. Updates will be provided as more information becomes available.