The call was made in a response to the Treasury's consultation, launched last month, on the distribution of unclaimed assets. The commission would like the money to be channelled into a social investment bank to finance the third sector.
Describing the release of unclaimed assets as "a lump of money followed by a trickle", Toby Eccles, secretary of the commission, told Third Sector: "This profile of money lends itself to investment. Revenue funding would not be sustainable."
The commission says project-based funding is an old-fashioned model. Eccles said: "This would be another form of supplier-decided funding. Recipients would again be told what to spend the money on and would not be able to build their organisations in a strategic way."
In response to the Treasury's suggestion that distribution of assets would be managed efficiently and minimum resources would be spent on running costs, Eccles said that a focus on low administration costs could potentially lead to "conservative or low-impact programmes".
The commission's final recommendation was that the Big Lottery Fund, which was identified by the Treasury as a possible assets distributor, "should be looking for a coalition of organisations that would bring the right combinations of finance and social expertise" to the development of a wholesale investment institution.
The deadline for submissions to the Treasury is 9 August.