The A-list spouses are closing the Will And Jada Smith Family Foundation amid a significant drop off in donations, according to Variety ... which says the foundation's tax filings show major donors -- like CAA and American Airlines -- bailed after Will slapped Chris Rock during the 2022 Academy Awards.

Apparently, the foundation went from bringing in over $2 million in 2021 to less than $400K in 2022.

The shutdown might not be solely due to Will's incident ... Variety says the Smiths were planning on ending the foundation before the Oscars drama because they wanted to focus on making private charitable donations.

Also noteworthy are some eyebrow-raising financial transactions for the foundation ... it reportedly had $3,000 in bank overdraft fees, over $25K donated to seemingly defunct mental health organizations and no paid staffers as of 2022.

Interestingly, as the foundation's shuttering ... Will's career seems to have weathered the storm of backlash. He currently has at least 4 active projects in pre-production, including the highly-anticipated "I Am Legend" sequel, and he's reunited with Martin Lawrence for the fourth 'Bad Boys' film, which comes out this summer.

As for the Smiths, personally -- last year, while promoting her memoir, Jada said she and Will were on a path to reconciliation following years of leading separate lives, and even living in separate homes.