SSAFA Forces Help and the Fishermen's Mission expect to receive £2m from the Lord Mayor's Appeal for 2005 - £100,000 was raised last month at a City of London launch reception for the appeal.
The 677th Lord Mayor, Michael Savory, who represents the Corporation of London in the UK and on trade missions abroad, chose the two charities after years as a council member of both SSAFA and the mission.
The appeal runs under the theme Helping Heroes and their Families. Savory said two-thirds of the money would go to SSAFA and the rest to the mission, "reflecting the importance of the two charities from my point of view".
Savory, who has a personal collection of more than 300 military vehicles in his Norfolk museum, admitted neither charity was fashionable, and the Iraq war did present a problem for some people, but he added that the City had traditional links with the armed forces and the maritime trade.