Thousands of pounds of charity donations were used by the London bombers to fund propaganda activities, it has been reported.
BBC Children In Need confirmed that it gave £20,000 to the Leeds Community School in Beeston, West Yorkshire, between 1998 and 1999 "in good faith" to fund educational work for local children.
The school shared premises and funding with the Iqra bookshop, where the 7/7 bombers Mohammed Siddique Khan and Shehzad Tanweer worked.
It was reported the money was used by Siddique Khan and Tanweer to produce hundreds of propaganda videos glorifying armed Islamic resistance and to pay for outward bound trips.
A former employee of the school and bookshop, Martin Gilbertson, said some of the funding was used by Khan and Tanweer.
He said he had become increasingly alarmed by their extremism: "They blamed everything on the Jewish conspiracy, they hated western culture; it was like living with jihad on a daily basis."
Children In Need chief executive David Ramsden said he was "incredibly concerned" about the donation.
A spokesman for the Charity Commission said Leeds Community School was no longer a registered charity. He added the commission would look at the evidence put forward and assess whether there was any need for further action.