There are no magic solutions to the problems of full cost recovery and funding, Ed Miliband, the new third sector minister, said in his first speech on Monday.
The Doncaster North MP promised to improve the resource base of the sector but warned against expecting instant results.
"I am not promising magic solutions, but I know we must continue to look at this and build on the Compact," he said.
Miliband was speaking at the launch of the Treasury and Cabinet Office review of the role of the third sector in social and economic regeneration.
The review will consider all aspects of spending, financial services and tax policy relating to charities, voluntary and community groups, social enterprises, co-operatives and mutuals.