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The proposed wording for the question in the referendum on changing the UK voting system needs to change, the Electoral Commission says.
Some people - "particularly those with lower levels of education or literacy, found the question hard work and did not understand it" - its report says.
The watchdog says the structure, length and the language used made the question "harder to read than it needed to be".
Deputy Prime Minister Nick Clegg promised to assess the recommendations.
The final wording of the question is a matter for the UK Parliament.
WHAT IS ALTERNATIVE VOTE?
- Instead of marking the ballot paper with an X for one candidate, the voter can rank all the candidates in order of preference.
- If a candidate receives a majority of first-preference votes then they are elected.
- If no candidate gains a majority of first preferences, then the second-preference votes of the candidate who finished last on the first count are redistributed.
- This process is repeated until someone gets over 50%
- Representatives are still elected for single-member constituencies
The question proposed by the government is: Do you want the United Kingdom to adopt the 'alternative vote' system instead of the current 'first past the post' system for electing Members of Parliament to the House of Commons?
The Electoral Commission's suggested redraft is: At present, the UK uses the 'first past the post' system to elect MPs to the House of Commons. Should the 'alternative vote' system be used instead?
The referendum, part of the coalition agreement between the Conservatives and Lib Dems, is due to take place on 5 May next year.
Under the alternative vote (AV) system, voters rank candidates in their constituency in order of preference.
Anyone getting more than 50% of first-preference votes is elected. If no-one gets 50% of votes the candidate with the fewest votes is eliminated and their backers' second choices allocated to those remaining. This process continues until one candidate has at least 50% of all votes cast.
The Liberal Democrats back a change to AV, but the Conservatives oppose it, and the two coalition parties have agreed that each will campaign for their own preferred system in the run-up to the referendum.
'Slight change'
New Labour leader Ed Miliband says he will be backing a change to AV in the referendum.
Jenny Watson, Electoral Commission chairwoman, said: "People told us that the wording of the question - with some changes - was easy to understand. However, they have a limited knowledge of what the 'first past the post' system is and almost no understanding of the 'alternative vote' system.
"Our research took place without the campaigns and extensive media coverage that will be in place in the run-up to the referendum. We found that when participants had more information on how both systems worked, their understanding improved and they could cast their vote in the way they intended.
"Campaign groups and the media will play an important role in the run-up to the referendum. And the Electoral Commission will also be playing its part, by providing every household in the UK with information on both voting systems and how they can cast their vote."
Mr Clegg, who is overseeing the government's constitutional reform programme, said: "They have suggested in their report a slight change to the question we proposed and we will look at it. It's only just come out.
"It's quite right that the Electoral Commission should have tested the question. That's why we provided them with our own thoughts on the question and we will look at their recommendations."
Institute of Fundraising says Ministry of Justice plans to do away with the list
The Ministry of Justice is likely to abolish the edited electoral register, the Institute of Fundraising has warned.
Louise Richards, director of policy and campaigns at the institute, told Third Sector that sources close to the ministry had indicated it was likely to do away with the list, which charities use to find contact details of potential donors and check the accuracy of donor details they have been given.
Organisations that had held meetings with officials at the ministry had told her the department was planning to abolish the list, she said.
The department ran a consultation on changing the edited electoral register from November 2009 until February this year. The edited register, which omits details of people who have asked to be removed from it, is on sale to anyone for any purpose.
It identified a number of options, including abolishing the register as soon as practicable, abolishing it but extending access to the full register and keeping it but imposing restrictions on its use.
The institute responded to the consultation with a letter that said: "The register is the only big source of accurate data of the UK population and their home addresses.
"If charities do not have access to the edited electoral register, this potentially will cost them in terms of lost income through not being able to correctly target mailings and appeals.
"If charities are unable to verify the address accurately, there is more chance of mail being addressed wrongly, which can reduce potential donors' inclination to donate."
Richards said the Ministry of Justice had confirmed its receipt of the letter but had not responded any further.
"I'm worried that this change could get in through the back door," she said. "As soon as we know the shape of the next government, we will be lobbying against the move."
A spokesman for the ministry said all the views put forward during the consultation would be taken into account before the next steps were considered.
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