A detailed analysis by Fairfax Media of the state RSL's finances reveals huge wealth that is concentrated in larger metropolitan sub-branches and regional centres, and that RSL headquarters acknowledges needs to be better exploited for veterans services.

Fairfax Media has been told of cases in which sub-branches were handing out "beer cards" of up to $500 value with every membership renewal, sub-branch executives wanting to fly themselves and their spouses to Thailand and Indonesia to personally view the tailoring of their RSL blazers, and fully-paid trips for executives and their spouses to overseas battlefield sites.

There have also been cases of sub-branches having gold commemorative badges made for members.

The analysis shows there are 69 sub-branches across the state that have more than $1 million in cash and non-property investments. These sub-branches have $295 million between them and last year earned $29 million but spent only $2.5 million on charitable donations and $4.5 million on branch activities for members. Their combined surplus last year was $15 million.

RSL NSW is made up of 364 sub-branches in total, with about 38,700 members. The state's sub-branches also hold nearly $150 million in property, bringing their total wealth to half a billion dollars.

The concentration on history and memorials and sometimes lavish meals and alcohol at sub-branch functions has been fuelling growing frustration among younger RSL members and reformists who say more needs to be done to help recent veterans of conflicts such as East Timor, Afghanistan and Iraq. Fairfax Media has spoken to many members who have expressed these concerns.

The NSW headquarters is poised to hold a forensic audit of its senior officials for the past seven years amid concerns of fraud, while national president Rod White faces a review after it was revealed that he and two former NSW colleagues were receiving "consulting fees" from the organisation's aged care arm while holding voluntary positions.

RSL NSW chief executive Glenn Kolomeitz said RSL NSW headquarters needed to "do more to meet the ever-increasing needs of the veteran community, particularly the younger veterans of recent conflicts".

"RSL NSW has a legal obligation to ensure all of our revenue goes to our charitable purpose – the care and well-being of serving and ex-service people and their families," he said.

He said the NSW RSL was working with the state government to develop an "impact investing model" that will allow sub-branches to invest in bonds which provide a return, with the capital used by the state headquarters for charitable work.

James Brown, a former Army officer who is now a writer and defence scholar as well as vice-president of the North Bondi sub-branch, said the organisation desperately needed reform.

"Sub-branches are rightly cautious about handing more money to a state headquarters that hasn't proved it can lead strategic projects to help veterans and their families, and spends $4.2 million annually to administer itself," said Mr Brown, who ran for RSL state president last month.

"Where there is a will to spend more on veterans' needs, the complicated bureaucracy of the RSL is all-too-often crippling. The net result is that a once-powerful charity is struggling to remain relevant and is long overdue for reform."

The 69 most cash-rich branches spent $5.5 million last year on general costs such as administration, building maintenance and salaries. Travel and officers' out-of-pocket expenses totalled a further $391,000, while $490,000 fell into the category of unidentified running costs.

Some $4.5 million was spent across the rich sub-branches on branch activities which include Anzac Day and Remembrance Day services, upkeep of memorials and social functions. Only $780,000 across the 69 wealthy branches was badged as "welfare" for members, including funerals.

Auburn, Bankstown, Blacktown, Five Dock and Dee Why sub-branches all had at least $15 million in cash last year.

Enfield-Croydon Park sub-branch had $3.2 million in cash but only 30 members, the financial records show.

Follow us on Twitter