Charity regulator investigating funds at unregistered organisation

The Charity Commission is to investigate the funds raised by an unregistered organisation, Sikh Youth UK, as the money is classed as being charitable and there have been warnings over financial management

In October 2018, West Midlands Police notified the Commission of concerns relating to the organisation’s receipt and use of charitable funds.

Having used its powers to obtain copies of bank statements, the Commission says analysis of the information obtained to date has identified a number of regulatory concerns which warrant further investigation.

The inquiry is examining whether those in control of charitable funds have properly exercised their legal duties and responsibilities under charity law in the administration of charitable funds held by the organisation.

In addition,it is looking at the financial management of the organisation; whether there has been private benefit to the trustees of the organisation; the organisation’s partnerships with other charities; and the conduct of the trustees.

The inquiry will also examine the organisation’s status in order to determine whether it is a charity in law. Those running the organisation have not applied to register with the Commission. If an organisation meets both the legal test for being a charity and the registration criteria then its trustees are under a legal requirement to apply to register with the Commission.

It is the Commission’s policy, after it has concluded an inquiry, to publish a report detailing what issues the inquiry looked at, what actions were undertaken as part of the inquiry and what the outcomes were.

Pat Sweet

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