Responding to the report, Doing good and doing well?, charity bosses overwhelmingly agreed that the sector could do much better at both measuring and reporting on its performance. Of those questioned, only 21% felt the sector’s practice on performance was 'good' or 'very good'.

But the survey also found that many charities are in the process of reviewing their approach to performance monitoring and management. Two thirds of respondents said they had made substantial changes to their approach over the last three years, and 67% said they intended to make further changes in the future.

Stephen Bubb, chief executive of Acevo, said: “The sector is becoming more professional, but there is a long way to go. Still sections of our sector see professionalism as a bad thing, working against our values. Yet whether we are service delivery, campaigning or volunteer led those we serve deserve the best. If we can’t be professional, we should not be there. Demonstrating our effectiveness and quality is becoming increasingly important.”

Bubb added that the report confirmed that the charity sector is mission driven, but he warned that it must become as commercial as business while being driven by voluntary sector values.

Responding to the report’s findings, Eric Appleby, chair of the performance hub, said: “We’ve moved a long way from the days when any third sector activity was justified on the basis of worthy do-goodery. We have had to create some concrete measures.”