The report makes a total of 52 recommendations and runs to more than 200 pages.

In a statement Home Office Minister Fiona Mactaggart welcomed the report from the committee, adding that she was “grateful for their thorough and knowledgeable inquiry”.

The report showed “widespread support for the principle that public benefit should be the bedrock of charitable status, regulated by a strengthened, independent Charity Commission”, she said.

In its response, the NCVO also welcomed the report, saying it “clearly demonstrates that the Joint Committee has carried out pre-legislative scrutiny with integrity and rigour”.

“Public benefit has been put at the centre of this legislation and the Committee pulls no punches over the need for existing charities to demonstrate what public benefit they provide,” a statement reads.

“The report also clarifies the role of the Charity Commission in both enforcing public benefit and providing advice where it directly relates to regulatory issues.” It also notes support for “the complete removal of the deeply unpopular economic and social impact powers”, referring to suggestions in the bill that the commission should be charged with ensuring charities maximize their “social and economic impact”.

The Charity Commission, however, said it “warmly welcomes” the report. “We are delighted to see the Committee’s focus on maintaining the independence of the sector and encouraging active citizenship,” said commission chair Geraldine Peacock.

The Institute of Fundraising is also largely positive about the recommendations, although it warns of “details still to be ironed out”.

Among its recommendations that the committee accepted were that: the Home Office should publish the criteria against which it will judge the success of self-regulation (the IoF have taken the lead in developing a system of self-regulation); and that the public should be informed if a fundraiser is paid, whether they are employed by a charity or are sub-contracted.

Andrew Watt, head of policy, said: “We urge Government to ensure a productive outcome when the Bill becomes law.”

On face-to-face fundraising, the PFRA also welcomed the report, particularly the recommendation that the Charity Commission rather than local authorities should act as the lead authority in granting certificates of fitness to carry out public collections.

Finally, both the Charity Finance Directors Group (CFDG) and the Association of Chief Executives of Voluntary Organisations (ACEVO) praised the committee for recommending that the rules for charities trading be relaxed. When it came to drawing up the draft bill, the Home Office had rejected the Strategy Unit’s recommendation in Private Action, Public Benefit that charities be allowed to trade without setting up a subsidiary.

Stephen Bubb, chief executive of ACEVO, said "We're particularly delighted that the committee has revisted the clauses on trading. This area is ripe for reform, as current rules and regulations verge on the nonsensical."

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