Police are investigating allegations of fraud at Age UK South Tyneside after a member of staff was suspended.
The Charity Commission has been alerted that concerns were raised at the charity, which had an income of £1.4m and expenditure of £1m in the year to end of March 2014, according to its latest accounts.
A spokeswoman for South Shields-based Age UK South Tyneside, which employs 38 people, according to figures on the Charity Commission’s online register, said: "A member of staff has been suspended after some concerns have been raised.
"As this is an ongoing investigation, we are unable to comment further."
A spokesman for Northumbria Police said: "We are aware of concerns about allegations of fraud. We are carrying out an inquiry to establish if any criminal activity has taken place."
A spokesman for the Charity Commission confirmed the regulator had been in contact with the charity about the allegations.
He said: "The charity has complied with its statutory duty to notify the commission of a serious incident involving a possible fraud against the charity."
The commission could not comment further during the police investigation, he said.