A charity recognised by Buckingham Palace for its work to help the families of fallen soldiers is being investigated over its spending.
The Charity Commission is looking into Forces Support Ltd (FSL) after a complaint from a war veteran that most of the money it raised went on running shops and employing staff.
According to its latest accounts, FSL enjoyed income of £2.7m in 2015-16 and spent £2.5m. However, only 15% of the expenditure — £375,308 — went on “charitable activities” with £2.1m spent on fundraising.
Over the same period, the charity’s chief executive was paid £71,400, an increase of almost 40% compared with his remuneration in 2014-15.
The Charity Commission acted after Colin Eastaway, 36, who served with the Parachute Regiment in Iraq and Afghanistan, raised concerns last December.
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“Dozens of families and former service personnel have contacted me about this charity,” he said. “I have tried to ask the charity for more information about how it spends its money but answers have not been forthcoming.”
The commission said on Friday that inquiries into FSL were “ongoing”. There is no evidence of wrongdoing. In a report published in 2015, the London-based True and Fair Foundation said nearly 300 charities channelled only 10% of income into charitable work.
FSL, which is based in Kidderminster, has a network of about 30 shops to sell clothes and other donations.
In July last year it received a Queen’s Award for Enterprise in innovation at Buckingham Palace.
The charity declined to respond to questions.