Legislation to improve regulations of charities comes into force

Tighter regulation of Scotland’s 20,000 charities begins today, as new legislation comes into effect.

Under a new test, charities must show they have a charitable purpose and provide public benefit, as part of the Charities and Trustee Investment (Scotland) Act 2005. Definitions of charitable purpose are included in the act.

Charities will be required to submit accounts to the Scottish charity regulator and their trustees will have new responsibilities in future.

The Scottish executive said the aim of the new legislation is to “reinforce public confidence in the charity sector and create a more appropriate, modern environment for the operation of charities in Scotland”.