The 'State of the Third Sector' study revealed that nine out of 10 charities claim the public do not understand how modern charities work.
The study also exposed a lack of innovation in charity marketing; 59% of the charities surveyed believe that 'charities are too cautious in their campaigning'.
The research further revealed a rift between big and small charities. More than a third said that big charitable organisations have a negative impact on the sector.
Disturbingly, just 46% of respondents believed that the charity they work for is trustworthy. Only 36% were positive that the sector as a whole was trustworthy.