Sentebale’s Lawsuit Against Prince Harry Stalls as Charity Reports £277,000 Deficit and Falling Income

Back in April, we questioned Sentebale’s decision to sue co-founder Prince Harry and former trustee Mark Dyer, particularly given the charity’s financial difficulties. Six months later, The Telegraph reports that the defamation proceedings have been put on hold amid concerns that an unsuccessful lawsuit could leave Sentebale facing substantial legal costs.

Sophie Chandauka and Sentebale’s leadership had previously maintained that external funding would protect the charity from the costs of litigation. Yet the latest reporting suggests that concerns about its financial exposure have not gone away.

Sentebale’s Own Accounts Tell a Different Story

Sentebale, founded by Prince Harry and Prince Seeiso of Lesotho in 2006, recorded £2.024 million in income against £2.301 million in expenditure during 2025.

That left the charity with a £277,000 deficit. After accounting for exchange differences, its funds declined by £317,000, while net assets fell from £567,000 to just £250,000.

Perhaps most concerning, its general unrestricted reserves went from a £232,000 surplus to a £10,000 deficit. These aren’t figures invented by critics of Sophie Chandauka’s leadership. They come directly from Sentebale’s annual report.

The trustees have even introduced a Reserves Recovery Plan to rebuild financial stability, with a target of £183,000 in free reserves. And the organisation’s fundraising events? Income collapsed from £715,000 in the previous reporting period to just £70,000 in 2025.

The earlier accounts covered 16 months rather than 12, so the figures are not directly comparable. Nevertheless, Sentebale acknowledges that its overall annualised income fell by approximately 20%. The Times reports that the loss of Harry’s high-profile polo fundraising events likely contributed to the decline.

Richard Eden Celebrates Donations While Sentebale Runs at a Deficit

What makes these figures particularly interesting is how Richard Eden chose to present them. In his October 15 reporting, Eden highlighted Sentebale’s increased donations following Harry and Seeiso’s departures.

General donations rose to £342,000, while legacies increased from £47,000 to £189,000. Those are encouraging developments, and nobody should pretend otherwise. But how does an increase in two fundraising categories become evidence of renewed financial strength when the charity’s overall income is declining, expenditure exceeds revenue and its reserves are deteriorating?

You cannot celebrate the figures that look impressive while overlooking the numbers that tell a much less flattering story. Eden portrayed the charity as displaying renewed vigour under Chandauka’s leadership. Yet its own financial statements show that rebuilding unrestricted reserves remains a priority.

And legacies are hardly proof that donors suddenly became more enthusiastic because Harry departed. People frequently arrange charitable bequests years before their estates distribute the money. Maybe the entire financial report deserves as much attention as the £342,000 headline.

Why Is Sentebale Pursuing Legal Action Against Its Own Co-Founder?

The financial difficulties make Sentebale’s continuing dispute with Harry particularly troubling. The charity launched defamation proceedings against Harry and former trustee Mark Dyer in March 2026, alleging a coordinated negative media campaign following the leadership dispute that prompted Harry and Prince Seeiso to resign in 2025.

Harry and Dyer have rejected the allegations. Now, The Telegraph reports that the case has stalled amid concerns about what an unsuccessful lawsuit could cost.

There is, however, an important qualification. Sentebale’s 2025 accounts state that a third-party funder has agreed to cover the charity’s legal fees and indemnify it against adverse legal costs. Yet The Telegraph reports concerns that an unsuccessful case could still create serious financial difficulties.

That raises further questions about the financial risks. Who exactly is the unidentified third-party funder financing Sentebale’s legal action against its own co-founder, Prince Harry? Why have they agreed to fund the proceedings, and what protections are in place if the charity loses?

The accounts also disclose other financial matters requiring attention. Sentebale’s accounts disclose £66,000 payable to trustee Iain Rawlinson for services provided before his appointment, alongside a separate dispute over £67,000 in solicitors’ invoices.

The charity contests liability for those legal invoices, so they should not be treated as an established debt. Nevertheless, these disclosures deserve scrutiny when unrestricted reserves are already in deficit.

The Children of Lesotho and Botswana Deserve Better Than Another Royal Dispute

Sentebale was established by Prince Harry and Prince Seeiso to support vulnerable children and young people affected by HIV and poverty in southern Africa. For nearly two decades, their involvement helped raise its international profile and attract support.

The Charity Commission subsequently criticised the public handling of the leadership dispute and identified governance weaknesses, while finding no evidence of widespread or systemic bullying or harassment.

Sentebale continues to deliver charitable programmes, but its latest accounts acknowledge reduced programme expenditure and the need to rebuild reserves.

Sophie Chandauka and Sentebale’s trustees should spend less time pursuing Prince Harry and more time explaining how they intend to reverse the charity’s declining income and depleted reserves.

The charity’s supporters deserve transparency about its finances and future fundraising strategy. And the children and young people it serves deserve an organisation focused on delivering sustainable programmes.

The real measure of Sentebale’s success isn’t whether it wins a public dispute with Prince Harry. It’s whether it can continue delivering meaningful support to the communities it was created to help.