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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.

When William Booth founded the Salvation Army in 1865, he had the poor and needy in mind.

The Methodist minister probably wouldn’t have included Nigel Hanger and his £5million fortune in that category.

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.

Lieutenant Colonel David Hinton, from the charity, said: ‘In the past three years alone, this has resulted in the donation of more than £16million, money which we would not otherwise have received from a national recycling and shop operation.’ The charity annually spends £150million on ‘the relief of poverty and the advancement of education’.

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.

But Mr Hanger has the Sally Army to thank for his designer suits, country mansion and Ascot-winning racehorse.

The 56-year-old has made millions from selling on the clothes and shoes which thousands of us donate to the Christian charity each week.

I am in business to make profit as best I can in the proper manner and to make as much money as I can for myself and my family.’Since Mr Hangar negotiated the contract in 2008, he has earned more than £5milllion.

According to Companies’ House he and his three directors have netted £10million while the Salvation Army received £16.3million.

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