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Leading voluntary organisations have welcomed the publication of government proposals to reform the law, which will mean charities have to prove their work has a public benefit, writes Sally Gillen.

'Private Action, Public Benefit', a consultation document issued by the cabinet office, calls for the 400-year-old definition of charity to be replaced, better information for the public on charities’ work, and the modernisation of the role of the Charity Commission.

Prime Minister Tony Blair has welcomed the report, arguing that its package of measures will "modernise the law and enable a wide range of organisations to be more effective and innovative".

Stuart Etherington, the chief executive of the National Council of Voluntary Organisations, described the report as "a great boost for the charity sector".

He added: "It is long overdue that all organisations that wish to become charities as well as those already in possession of charitable status should have to demonstrate the public benefit they provide."

Stephen Bubb, chief executive of the Association of Chief Executive of Voluntary Organisations, said: "This review, together with the Treasury report’s recognition of ACEVO’s funding message, is a major step forward. It is good to see the government placing the sector firmly on the national agenda."

A full copy of the consultation document is available by clicking here