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Signs on the charity’s recycling banks explain that profits are used ‘to help the Salvation Army’s work with people in need both at home and abroad’.He said: ‘Anyone would believe the donations are going to the benefit of those that need them, not to somebody who is making a massive amount of money.‘I will think twice before doing it again.’ At his office on an industrial estate nearby, Mr Hanger, whose home is located in a village near Wellingborough, defended his position.‘Profits are good,’ he said.A spokesman for Charities Minister, Nick Hurd, called on the charity ‘to explain what is going on’.And Tessa Jowell, the shadow charities minister, said she was ‘extremely concerned at the suggestion that a charitable organisation has been misrepresented in this manner’.

He added: ‘The operation of SATCo L [the charity’s trading arm] and its recycling partner is a huge commercial undertaking providing substantial funds to the Salvation Army which are directly used for our work.‘It would be naive to believe or expect that such an operation would not incur administrative costs.’ It is not appropriate for the charity ‘to comment on the remuneration paid to personnel in an independent company that is not a subsidiary of the Salvation Army and over which we do not exercise any legal control,’ he added.

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The Salvation Army is a member of the standards board, the charity sector’s self-regulatory body which sets out to safeguard public trust and confidence in fundraising tactics used by good causes.

It could be brought before the independent board to answer questions and, if the board is not satisfied by the answers, could be removed from the register.

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