Scots are now less likely to donate

The body will assume wide-ranging powers to monitor and supervise the work of charities.

It will also be able to take action in cases of misconduct or mismanagement.

The move follows recent financial scandals involving the Moonbeam's children's cancer charity and Breast Cancer Research Scotland.

Supervision programme

The Office of the Scottish Charity Regulator (OSCR) is based in Dundee.

One of the main tasks of the OSCR will be to take over investigations into charities currently undertaken by the Scottish Charities Office, which is part of the Crown Office.

Earlier this year the Scottish Executive conceded that confidence in Scotland's charity laws had been undermined following two high profile cases.

In May Breast Cancer Research (Scotland) had its assets frozen after a probe found only �1.5m of �13m raised had actually been donated to charity.

It is essential we enable charities to operate in a climate of trust and respect by providing firm and fair regulation in which the public has confidence Margaret Curran MSP

And the Court of Session moved last month to have directors of the Moonbeams children's cancer charity permanently removed after they failed to answer allegations which surfaced in October that just �70,000 of almost �3m raised went to sufferers and their families.

The new office will maintain an up-to-date index of Scottish charities, provide a central source of information, develop a monitoring and supervision programme and investigate and take action in cases of misconduct or mismanagement.

Communities Minister Margaret Curran said: "I am committed to putting in place a more effective and comprehensive regulatory regime for charities in Scotland, and this is another step along that route.

"It is essential we enable charities to operate in a climate of trust and respect by providing firm and fair regulation in which the public has confidence."