The Charity Commission has opened a statutory inquiry into a sports charity following concerns surrounding potential misuse of funds and links to another recently investigated organisation.
Quba Charity, which was formerly named Specialist Sports Foundation, was set up to promote community participation in sports for people in Derby, East Midlands.
The regulator opened its investigation after finding connections that raised regulatory concerns between Quba Charity and international aid charity Quba Trust, which it investigated last year.
Its investigation into Bedfordshire-based Quba Trust found misconduct and/or mismanagement and ultimately resulted in the disqualification of three of the charity’s trustees.
The commission said two of the banned trustees at Quba Trust, whose names have not been disclosed, have also been involved with Quba Charity and it has expressed concerns about the extent of their involvement and potential influence.
It has prevented the trustees of Quba Charity from transferring charity funds or assets outside of the UK, from fundraising and appealing for funds while it investigates the charity.
Regulator concerned by ‘close similarities’ between charities
Through its preliminary assessment prior to launching the statutory inquiry, the regulator also identified several “close similarities” between the Quba Charity and Quba Trust’s branding, social media and website content.
This includes information on Quba Charity’s website about overseas projects, which carry the Quba Trust’s name and logo.
Both charities also share a registered office in Luton.
The commission will aim to establish if Quba Charity has been acting outside of its purposes. If found, this would be considered a misuse of funds and a breach of trust.
It said the scope of the investigation may be extended if any additional issues emerge.
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