Schools like Fettes in Edinburgh could lose their charity status

The Charities and Trustee Investment (Scotland) Bill was passed without the backing of the Tories, who had concerns over the effect on private schools.

The bill will result in a new register and enhance powers to the Office of the Scottish Charity Regulator.

The legislation was passed by 98 votes, with 15 abstentions.

It was introduced following a number of high-profile cases where only a small part of funds raised by Scottish organisations went to good causes.

Communities Minister Malcolm Chisholm said the new laws would allow charities to flourish and give the public confidence in charities.

Public benefit

He told the parliament: "The bill, which the charity sector has called for over a long period of time and which we gave a commitment to, is good for the charity sector and good for Scotland.

"We all want an environment where charitable activity can flourish."

The legislation will also redefine charitable status with a new two-stage public benefit test.

And the relationship between professional fundraisers and client charities is to be tightened up, more information will be available on how funds are spent and the local authority licensing system for public collections will be strengthened.

They're (private schools) genuinely committed to education and community service. If they're not charities, what are they? Judith Sischy SCIS

Under the bill, organisations must first fall within one of 16 categories of charitable purpose - among them, the prevention or relief of poverty, the saving of lives and the advancement of education.

The Scottish Council of Independent Schools said its members felt they would pass the public benefit test but believed they had been misrepresented.

SNP MSP Christine Grahame said the schools should not have charity status.

Judith Sischy, of the SCIS, said independent schools believed they had a strong case for retaining their charitable status.

She said: "They're reasonably confident that they will pass the public benefit test, but I think they're concerned they've been misrepresented in some of the debate.

"They're genuinely committed to education and community service. If they're not charities, what are they?

'I needed scholarships'

"They're not there for commercial reasons or for profit or personal gain. So being a charity represents what they are."

However, Ms Grahame said she was far from convinced that independent schools offered any real public benefit.

"When I look at public benefit, I look at the public at large, not a minority," she said.

"For most people who go there, they've got to have at least �14,000 a year to go there.

"In my parlance, you're not a charity when you're charging people that amount of money to go to your school."

One in 10 pupils at private schools in Scotland is given a bursary or scholarship.