Charities are overwhelmingly against the introduction of an annual charge to fund the Charity Commission, according to a survey of 610 charities by voluntary body Navca.

Seventy-seven per cent of respondents to Navca’s annual Voluntary Sector Survey said they were against proposals to force charities to pay an annual regulatory fee. Just 9 per cent of respondents said they agreed with the proposals.

Neil Cleeveley, chief executive of Navca, said the Charity Commission should “take note” that the introduction of an annual charge was “roundly rejected” by charities.

“The regulator should work with us to make the case for better public funding of its duty to ensure public confidence in charities,” he said.

The Commission has seen its budget cut by half in recent years, while simultaneously coming under pressure to increase regulatory scrutiny.

The Commission’s chair, William Shawcross has repeatedly indicated that the regulator would soon be forced by funding cuts to introduce the annual fees for registered charities.

But the move was described by the Public Accounts Select Committee, as a “tax on charities” that could “block the creation of new charities” as well as the “dynamism and charitable spirit of volunteers.”

Commenting on the report’s findings, Andrew O’Brien, head of policy and engagement for the Charity Finance Group, said: “Navca’s report shows that there is no appetite for charging charities to pay for regulation. This isn’t just about the financial impact on charities, but also the fundamental change in the relationship between charities and the regulator this would cause.

“Any financial relationship between charities and the regulator will lead to its independence being questioned.

“Charities don’t want this ‘charity tax’. Our research has showed that there is no consensus amongst the public. We’d do better to make the case to government for why a small investment in the Commission is worthwhile, rather than focusing on how to make charities to pay,” he said.

The survey also revealed that charities favour stricter rules on fundraising – despite the difficulty it could cause them. Some 59 per cent of charities favoured stricter rules, while 27 per cent disagreed.

Charities also overwhelmingly rejected the idea that they should be prevented from campaigning – with 92 per cent saying they rejected the idea and just 4 per cent agreeing it was a good idea.

Some 72 per cent of respondents to the survey also thought that the replacements of government grants with government contracts would cause charities harm.