The charity FEBA Sport and Leisure will be struck off the Scottish charity register after the Office of the Scottish Charity Regulator ruled it had failed to demonstrate any financial records, was in severe financial difficulty and had breached its own constitution by having only one trustee.
The charity, which was set up in 2007 to enable ex-service personnel to take part in sports activities, will be removed from the register next month.
In a report about its decision to remove the charity from the register, the OSCR said the charity was "currently incapable of providing public benefit and there is no reasonable prospect that it can do so in the future".
It said the charity's sole trustee, Thomas Moffat, had "failed to demonstrate that the charity had any financial records or controls and failed to demonstrate the required financial management skills".
The report added that the charity had "significant outstanding debts" and no feasible plan for paying them off.
Moffat failed to appoint additional trustees, despite a statement in the charity's articles of association that it should have at least four directors, the report claimed.
It said that allowing FEBA to remain a registered charity would lead to a strong possibility of adverse publicity, which would damage the reputation of the sector.
The OSCR's records showed the charity had an income of £20,555 in 2007/08.
Third Sector was unable to contact FEBA Sport and Leisure for comment.