The report warns that there is an emerging pack of leading charity brands that are perceived by large sections of the general public as the entire charity sector.
It claims that a small number of charities with household names monopolise funding from the Government and fundraising from the public.
The research, a survey of 3,300 charities’ annual reports, found that charities that invested in branding, marketing and publicity were the most successful in maintaining income streams.
Some charities saw their grants and donations fall by £12m more than others who spent an extra £6m on publicity and fundraising.
‘This report demonstrates the importance for charities of developing stronger marketing and communications techniques,’ said NCVO head of campaigns and comms Chris Stalker. ‘Having a higher profile helps small charities to get funding.’
The report was launched at the Cass Business School in London, which has developed a guide to help small voluntary organisations undertake better strategic planning.