The Charity Commission has appointed a receiver and manager to youth charity Albion House.
Following a formal inquiry, the Commission has decided that the organisation, based in Liverpool, is being mismanaged and a receiver and manager is necessary to run it while constitutional issues are being resolved.
A long-running dispute within the charity led to an administrative paralysis where even the signing of cheques posed problems.
David Carbery, regional operations manager at the Charity Commission said: "The dispute within Albion House has escalated to such a level that it is affecting the day-to-day running of the charity. It will be the receiver and manager's priority to ensure the charity is properly administered, so that the Commission can get on with looking at the constitutional difficulties and find a way to resolve them for the future."
Greg Smith-Richards of solicitors Edwards Smith-Richards is to take up the post of receiver.