Red tape and unnecessary criminal record checks are preventing willing and able volunteers from coming forward, an adviser to the Prime Minister has said.
Baroness Neuberger, chairwoman of the Commission on the Future of Volunteering, said a fundamental shake-up of the system is needed to make volunteering part of the "DNA of society".
A report by the commission called on ministers to remove bureaucratic barriers to help aide the third sector.
In 2007, 49% of people in England volunteered at least once a month to help people in a formal or informal capacity. The total annual value to the economy is estimated at £48.1 billion.
In Manifesto for Change, the commission said the Government could boost volunteering further by adopting a position of non-interference and resisting the temptation to develop new initiatives.
Launching the report, Baroness Neuberger, a Liberal Democrat peer and the Prime Minister's special adviser on volunteering, said: "Our vision is a society where volunteering is part of our DNA so that by giving time, we enrich our own lives and those of others. But at the moment, too many people are being put off volunteering. Many people come forward to offer their time and skills, but red tape and unnecessary bureaucracy get in the way."
She continued: "It is time to rethink the obsession with any risks that might be involved and to remove financial obstacles which many people experience when they try to volunteer. We also need to avoid time-consuming criminal record checks, unless volunteers are working with children or vulnerable adults."
Among the commission's recommendations was the setting up of a working group tasked with finding ways of removing barriers to volunteering.
It added that a three year annual fund of £5 million should be provided for partnerships between local organisations and local authorities to modernise the infrastructure and support strategic development. In addition, an Access to Volunteering Fund, with initial funding of £1 million, should be piloted.
The commission's report also criticised parts of the volunteering sector for failing to address the needs of sections within UK society. It noted that groups including disabled people, those with mental health problems, asylum seekers and refugees often encountered difficulties when enlisting for volunteer opportunities.
