The charity informed the Commission this week that £5,000 of the payment had been characterised by the Labour Party as a donation - which is not permitted under charity law.
The Commission has been investigating Schoolfriendetc since September 2007 because of "financial management" issues, including overdue accounts. The charity had another Labour Party donation, of £7,500, returned in September this year.
This money was refunded when the Labour Party found out Schoolfriendetc had breached Commission guidelines on charities and campaigning. The charity called it an "administrative error".
A spokeswoman for the Labour Party said: "After finding another, earlier, donation from Catz Club during a check of the party's records we are now in the process of returning this money to the charity as well."
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