The new structure is expected to allow it to focus more on impact than operations, a source close to the Sussexes said.
Archewell Philosophies will fall under the umbrella of a “fiscal sponsor” through which all donations will now be processed.
Fiscal sponsors serve as the administrative home of a charitable cause, meaning that activities are included within their own audited financial reports and tax filings.
The source insisted that the switch would remove certain “administrative barriers” and allow the swifter movement of funding, as well as more focus on “impact” rather than operations.
They said Archewell Philosophies would continue to be fully charitable, tax-deductible, and IRS-compliant while focusing on the same causes of mental health, responsible technology and community wellbeing.
A spokesman for the Duke and Duchess said: “This next chapter allows Prince Harry and Meghan, the Duke and Duchess of Sussex, to broaden their global philanthropic efforts as a family, with meaningful reach and maximum impact, grounded in the same values, partnerships and their commitment to show up and do good.”
The announcement came as the Duke and Duchess released their Christmas card, featuring a photograph of them holding hands on the ski slopes in Vancouver during the winter Invictus Games, as well as a video montage.
The card says: “We wish you a very happy holiday season and a joyful New Year.” The Sussexes will spend Christmas at home in California.
The Duke and Duchess also released a photograph showing them with their children, Prince Archie, 6, and Princess Lilibet, 4, on a bridge in a sunlit garden.
Prince Archie has his arms tightly wrapped around his father’s waist while his sister, her face obscured by her red hair, holds her mother’s hands as they touch foreheads.
This year, Archewell has advocated for safer digital spaces and the responsible development of AI. It has also funded support for children affected by conflicts in Gaza and Ukraine.
The announcement comes as Prince Harry prepares to return to the UK in the new year for the trial of his High Court claim against Associated Newspapers Limited, the publisher of the Daily Mail.
The nine-week trial, involving seven claimants also including Baroness Lawrence and Sir Elton John, is expected to cost £38 million ($88m) and is set to start in mid-January.
Meanwhile, Meghan has been developing her business As Ever, selling Christmas-themed food and wine.
Last week, she had a letter delivered to Thomas Markle, her father, who remains in hospital in the Philippines following a leg amputation. The pair have been estranged since she married Prince Harry in 2018, after he staged paparazzi photographs.
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