The Charity Commission has opened an inquiry into the financial management of an unregistered charitable organisation.
Sikh Youth UK is not a registered charity, but the regulator has jurisdiction as the organisation’s funds are held for charitable purposes.
However, the regulator is examining whether those in control of the funds have properly exercised their legal duties and responsibilities. It will also look into the financial management of the organisation as a whole; 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.
The inquiry follows a notification from West Midlands Police in October 2018, which raised concerns about the organisations receipt and use of charitable funds.
The regulator exercised its powers under Section 52 of the Charities Act 2011 to obtain copies of bank statements and its analysis identified a number of regulatory concerns, which warrant further investigation.
As a result of this, the Charity Commission opened a statutory inquiry on 15 November 2018. The Commission has been unable to announce its investigation before now so as to avoid prejudicing criminal proceedings.