Local authorities are being urged to give voluntary organisations at least three months' notice of changes to funding as councils prepare for expected cuts in the spring.
The Commission for the Compact last week published guidance for councils on managing budget revisions.
The guidance says "clear and robust reasons should be provided" when ending a funding relationship and organisations that are affected should be given an opportunity to respond.
"The current economic climate has created significant budgetary pressures for local authorities," said Richard Williams, policy adviser at the commission.
"The commission recognises that local authorities are facing many tough decisions and believes that the national Compact principles often outlined in local Compacts are now more important than ever."
Sir Bert Massie, Commissioner for the Compact, added: "We want local authorities to use this guidance as they manage budget revisions during this difficult economic period."
The commission is the public body responsible for the Compact, the partnership agreement between the voluntary and statutory sectors in England.