The organiser behind Anzac charity Camp Gallipoli says the group is "heartbroken" after being accused of financial dishonesty.

Key points: Camp Gallipoli hosts camp-outs under the stars the night before Anzac Day

Camp Gallipoli hosts camp-outs under the stars the night before Anzac Day Veterans' Affairs Minister orders an investigation over allegations regarding funding arrangements

Veterans' Affairs Minister orders an investigation over allegations regarding funding arrangements The charity has been told they cannot use the word Anzac

The charity has been told they cannot use the word Anzac Charity says there is 'no substance' to the allegations

The Department of Veterans' Affairs (DVA) is investigating the group after allegations were made that the charity did not pass on fundraising money to veterans' associations RSL National and Legacy.

It has also revoked the charity's right to use the word Anzac.

Camp Gallipoli organiser Chris Fox said the organisation had done nothing wrong.

"To be honest it's broken our hearts because we've just simply, as a group, tried to do the right thing and have done the right thing," he said.

"There is no substance to any of these allegations. We haven't made money to line our own pockets."

Mr Fox said the charity had no money to give.

"The costs are audited by Price Waterhouse Coopers, there's no furphies when it comes to costs," he said.

"In year one we broke even. There was no cash distribution made and therefore any gift to RSL and to Legacy by way of cash didn't occur.

"We just weren't able to give them the present they wanted.

"I'm sorry to the RSL and Legacy if they feel as though we should've given them some cash but hey, it's our call and we just didn't have any left over so we're sorry."

The charity is best known for hosting "camp-outs" under the stars on the eve of Anzac Day.

Last year the events were held in most Australian capital cities, attracting 6,000 people in Sydney.

Camp-outs are also planned in Adelaide, Brisbane, Melbourne, Sydney and Perth tonight.

In a statement, Minister for Veterans' Affairs Dan Tehan said he was "extremely concerned" about the allegations against the charity, and had asked the department to look into Camp Gallipoli's funding arrangements.

On revoking the charity's right to use "Anzac", Mr Tehan said he did not want the dignity and honour associated with the term tainted.

"It would be disturbing if any company or individual tried, or gave the impression of trying, to gain a commercial advantage by the inappropriate use of the word Anzac."

'The nation will expect a full inquiry'

Neither Legacy nor RSL National continue to officially support Camp Gallipoli after both confirmed they received no money in 2015.

RSL National president Rear Admiral Ken Doolan AO said there were assurances that money raised would be passed on.

"RSL National endorsement was provided to Camp Gallipoli in 2015 following written and verbal assurances regarding appropriate protocols and controls, and a guarantee that funds raised by Camp Gallipoli would be donated to both the RSL and Legacy," he said in a statement.

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Legacy chairman Tony Ralph said he was not disappointed that no money was being passed on.

"Legacy's view after careful consideration was that Camp Gallipoli offered an educational opportunity for young children and on that basis we entered into an agreement with them," he said.

"We would have been delighted had there been any money left over but the idea of making money out of Camp Gallipoli wasn't what we were in it for."

Mr Ralph said Legacy no longer had any official relation with Camp Gallipoli.

"It was our view that perhaps it wasn't as successful in the role of educating children as we had imagined. For that reason we pulled back," he said.

Australian War Memorial director Dr Brendan Nelson said the allegations were disturbing.

"Veterans, families, and the nation will expect a full inquiry and examination of Camp Gallipoli and its finances," he said.

"A lot of good-hearted Australians have got behind this. They and the memory of the men and women whose memory it honours deserve nothing less."