But the National Council for Voluntary Organisations (NCVO) said the change could set a "dangerous precedent". NCVO chief executive Sir Stuart Etherington said: "Making the right (to pay trustees) automatic undermines the value of voluntarism which defines the sector and goes against the public mood. The majority of charities are also against this move, primarily because it would blur the boundaries between commitment to a cause and financial reward."
A Cabinet Office spokeswoman said the proposal would give large charities "another tool" to help recruit trustees with "the right skills and experience".
In his report, Lord Hodgson said small charities should still be required to seek permission from the Charity Commission to pay trustees. He warned there was a "danger of abuse" from smaller organisations if they fall "below the regulatory and public radar".
Lord Hodgson also called for new national guidelines for the licensing of street fundraisers which would regulate their conduct. He said there was a "broad consensus" that the current licensing laws did not apply to "chugging" because it involved donors signing up to direct debit payments rather than handing over cash. The Public Fundraising Regulatory Association estimates about £130 million is donated to charity each year from people recruited through "chugging", the report said.
Other recommendations included raising the income threshold for compulsory registration with the Charity Commission from £5,000 to £25,000, removing Gift Aid for organisations who are late in filing accounts, and introducing fees for registering new charities and filing annual returns.