A study by Choice has found the way overheads are recorded makes it hard for donors to compare how much money gets through to each charity's beneficiaries.

Christopher Zinn from Choice says a mix of state and territory regulations make comparing charities difficult.

"Really it's impossible to compare charities to compare what the cost of fundraising is," he said.

"While that's not the sole measure of how effective they are, it's still an important one and something that donors would like to see and at the moment, due to a hotchpotch of legislation, it's very difficult to make meaningful comparisons between charities."

Mr Zinn says it is important that people know how much of their donation ends up with the intended beneficiary.

"Having a single regulator will not only give a lot more transparency to the consumer - the donor who wants to help the charity - it'll also help the charities with their overheads," he said.

Source: By Australian Broadcasting Corporation