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Charity regulator investigating funds held by unregistered organisation

The Charity Commission, has opened a statutory inquiry into funds held by and raised in connection with Sikh Youth UK. Sikh Youth UK is not a registered charity, however the Commission has jurisdiction due to the funds being charitable.

In October 2018, West Midlands Police notified the Commission of concerns relating to the organisation’s receipt and use of charitable funds. The Commission exercised its powers under Section 52 of the Charities Act 2011 to obtain copies of bank statements. The Commission’s analysis of the information obtained to date has identified a number of regulatory concerns which warrant further investigation.

The Commission therefore 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.

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;
• 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;
• 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*.

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. Reports of previous inquiries by the Commission are available on GOV.UK.

Notes to Editors

1. The Charity Commission is the independent regulator of charities in England and Wales. To find out more about our work see the about us page on GOV.UK.
2. Search for charities on our check charity tool.
3. While the Commission has been working closely with West Midlands Police throughout the inquiry, the Commission’s case is separate from any investigation the police may be carrying out in respect of the organisation, its trustees or individuals linked to the organisation. The Commission does not investigate criminal allegations; these should be reported to the police.
4. The opening an inquiry is not in itself a finding of wrongdoing.
5. *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.

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