The Northern Ireland public has so far donated £700,000 towards a helicopter air ambulance, the BBC has learned.
Northern Ireland's new charities commission should investigate a fundraising campaign for an air ambulance, a former Ards mayor said.
The majority of the money collected by the Ireland Air Ambulance charity - 90% in its first year - has been spent on wages and administration costs.
It follows news that the Ireland Air Ambulance charity has raised £700,000 in public donations, but spent £500,000 on wages and costs.
Health Minister Michael McGimpsey said he did not believe there was sufficient demand for the service.
Ards Council considered setting up an air ambulance several years ago, but decided it wasn't feasible.
"Frankly, I am bemused that this is progressing the way it is," Mr McGimpsey said.
However, the charity said it needed to develop its fundraising programmes.
"We are collecting money for an ambulance helicopter that, as far as I am aware, there has been no order placed for, there has been no understanding created for and actually, when I look hard at it, there is no real need for."
Former Ards mayor, Alderman Ronnie Ferguson, said questions needed to be answered.
"The proposed helicopter that you are talking about operates only in good weather and in daylight.
"We had looked at all this going back nine years ago before this charity was actually formed," he said.
"The maritime agency will provide us with a helicopter in all weathers, day and night, throughout the year so that is our prime resource in the event of needing a helicopter.
"But the figures didn't stack up and certainly there needs to be some investigation by the new Charities Commission."
"Currently, the demand, according to the ambulance service, is not there."
In a statement, the charity said that in order to ensure that air ambulances charities build a sustainable and stable income year after year, they need to develop both the fundraising programs required to raise finances, as well as running an emergency service.
Health Minister Michael McGimpsey has said he does not believe there is sufficient demand for the service.
The IAA has said it hopes to launch the service in November, although to date it has not found anywhere to base its helicopter.
The IAA has said it hopes to launch the service in November, although to date it has not found anywhere to base its helicopter.
The charity has also said it planned to have a leased a helicopter before the beginning of June.
Speaking at the beginning of last month, charity spokesman Mark Sellers said the aircraft had already been sourced.
"We are signing contracts within the next 10 days. We are very fortunate.
"The company that have supplied us with the aircraft have really looked after us."
However, the BBC understands that a lease has yet to be signed.
Before any air ambulance becomes operational it needs to have robust agreements in place with the health and ambulance services to cover deployment practices.
Mr McGimpsey said these agreements do not exist.
"There have been attempts to discover a protocol or a way forward but to date the proposers for the ambulance have not been able to satisfy the health service as to how this ambulance would operate," he added.
