The report by Theos, a religion and society think tank, suggests many Christian charities give aid and help to poorer people but make no attempt to evangelise.
Researchers carried out more than 20 interviews with faith-based organisations in sectors like drug rehabilitation, housing, debt advice and education, as well as those who commission services, and found none of the agencies used charitable activity as a way of converting people.
They were concerned that accusations of proselytism meant that people would be scared to use or donate money to the service.
Many reported there were suspicions around their organisation because of a link to Christianity.
"Accusations of proselytism [trying to convert someone] tend to be attempts to restrict faith-based social action," said report author Paul Bickley.
"This could be self-defeating, distracting stakeholders from a focused and practical conversation about what they can do together."
Among other recommendations to report suggests faith-based charities should give spiritual help alongside aid and financial support.
"It's right that faith-based organisations acknowledge vulnerability but they shouldn't talk themselves into a position where it's impossible to recognise the spiritual aspect of people's lives and experience," added Bickley.
"If we understand it properly and respond to it maturely, the problem of proselytism should be recognised as what it is - no problem at all."
