Conservation charity BTCV would accept less Government funding if the money was for projects spread over a longer period of time.
Miles Sibley, development director at the charity, said providing short-term funding over only one year was expensive and wasteful.
"Setting up a project to run for a year means recruiting new staff and making contact with new beneficiaries," he told Third Sector. "Staff running these schemes often leave before the end because there's no job security.
"It means the projects run at full momentum only for a few months, which is very damaging for the disadvantaged and marginalised communities we work with. They need stability."
Sibley said the charity would prefer to run smaller-scale projects that offered greater consistency than one-year schemes that "leave beneficiaries in the lurch when they close", particularly with projects that involved marginalised communities.