Sentebale is reportedly pausing its legal action against Prince Harry, as recently published accounts show a near-20% drop in income.
Financial statements published last week show the charity’s total income fell to £2.024m last year, as a regulatory compliance case “increased governance and reputational exposure”.
In February 2025, Sentebale, which was founded in 2006 by Harry and Prince Seeiso of Lesotho and supports children and young people in southern Africa, raised governance-related concerns with the Charity Commission following an internal dispute.
This resulted in the regulator opening its case on 3 April 2025, which concluded on 6 August 2025 with a regulatory action plan after identifying governance weaknesses.
On 10 April 2026, Sentebale announced that it had brought legal proceedings against Harry and its former trustee Mark Dyer, in the midst of a “coordinated adverse media campaign” against it.
But according to a report in the Telegraph this week, its defamation claim has been paused amid “fears in some quarters that a loss could see the charity forced to fold to cover legal bills”.
Civil Society has approached Sentebale for comment on the report.
A note on the charity’s accounts states that its legal fees are discharged by a third-party funder, which has agreed to provide it with “a full indemnity in respect of those fees and any adverse costs, and has confirmed that it’s entitled to and able to do so”.
“The trustees keep the proceedings under active review and are committed to alternative dispute resolution where possible,” the accounts read.
“The trustees have considered the progress of the proceedings in their going concern assessment and don’t expect them to give rise to a financial obligation for the charity during the review period.”
A difficult year
The charity’s accounts for the year ended 31 December 2025 show that the income reduction was driven by lower event income, reduced gifts in kind, and lower donations from trusts and foundations.
It recorded a deficit of £277,000 and £317,000 when taking into account £40,000 of “exchange differences on translation of overseas entities”.
At 31 December 2025, its general unrestricted reserves funds were in deficit by £10,000 (2024: surplus of £232,000) out of total reserves of £250,000.
In its accounts, Sentebale said 2025 was a difficult and demanding year that required “significant organisational attention” due to a wider organisational transition while responding to concerns raised with the commission.
It said several of its principal risks crystallised over the year, “testing the organisation’s resilience and requiring active management”.
During the year, its principal work in the UK focused on leading strategy and organisational change and coordinating governance, finance, fundraising and shared support functions.
The charity also supported programme delivery in Lesotho and Botswana while managing its UK’s response to the commission’s case review and resulting governance requirements
“Funding disruption affected programme planning and continuity; pressure on public services and commodity availability affected delivery; the Charity Commission case review increased governance and reputational exposure; and organisational restructuring created short-term workload, continuity and control risks,” it said.
The charity said it responded by adapting programme delivery, strengthening governance and oversight, improving financial and operational discipline, and clarifying leadership and accountability.
These actions reduced “immediate exposure in some areas and informed priorities for 2026, particularly funding diversification, board renewal, delegated authority, organisational capacity and reputational recovery.”
‘We took that scrutiny seriously’
Carmel Gaillard, global executive director at Sentebale, said the findings of the regulator’s case gave the charity “a clear basis for strengthening governance, including delegation and internal complaints processes”.
“We took that scrutiny seriously and used it to improve how the organisation is governed and managed,” she wrote in the accounts.
“The year reinforced several lessons. A broader funding base is essential to continuity and growth.
“Efficiency isn’t simply about reducing costs; it’s about having the right capability in the right place. Evidence must tell us what changed, not only how many people participated.
“Across our programmes, results were stronger when governments, partners, families, communities and young people helped shape how services were delivered.”
