Chief executives body Acevo is setting up a working party to examine how third sector organisations can make the most of contracting opportunities offered by individual budgets.
The Government is looking at using individual budgets, which would allow people to choose who provides services to them, in a range of areas including health and social care and education.
Ralph Michell, head of policy at Acevo, said individual budgets represented a huge opportunity for the sector.
"To some extent, individual budgets take the commissioners out of the equation and put the third sector organisations in their element, which is focusing on the clients," he said. "It's worth looking at and making sure we grab it."
Individual budgets also made it easier for small organisations to win contracts to deliver public services, he said.