The MLA for North Belfast was speaking after a secret recording obtained by BBC Spotlight revealed the PSNI told the charity to make it clear to local loyalist leaders it was not running a mosque.
Nuala added: “This is extremely concerning and yet another blow to public confidence in policing and it is just not acceptable.
“It is completely out of order to suggest that any charity working to serve our community should be made to feel they have to justify their existence and it certainly should not be the PSNI pursuing one side of the community.
“I’ll be taking this issue up at the earliest opportunity at the Policing Board and my colleague Kate Nicholl MLA will ensure this is on the agenda of the next meeting of the APG on Ethnic Minority Communities.”