Acevo is calling on the Government to appoint an ombudsman and introduce penalties in a bid to end what it sees as the exploitation of charities through poor contracts.
The proposals were to be announced yesterday at the publication of Surer Funding, Acevo's report into voluntary sector delivery of public services.
Acevo is also calling for an accreditation body to award a kitemark to funders who conform to best practice.
The Home Office-funded inquiry was launched in response to the Government's drive to encourage not-for-profit organisations to develop essential public services such as housing and social care.
The report claims that badly written contracts are putting services at risk. Ed Mayo, chief executive of the National Consumer Council, chaired the commission. He said: "Sudden-death contracts and bureaucratic reporting leave charities in the grip of endemic insecurity."