The new law that consolidates all charity legislation for England and Wales received Royal Assent yesterday.

The Charities Act 2011 does not change the law, but it replaces most of three existing Acts: the Recreational Charities Act 1958, which gave charitable status to village halls; the Charities Act 1993, which contains all the rules on charity accounting, and the Charities Act 2006.

The 2011 Act will come into force in three months and the previous legislation will then be repealed.

Professor Gareth Morgan (pictured) from Sheffield Hallam University described the new law as “the most important piece of charity legislation for a generation”.

He said: “While the 2006 Act made big changes to charity law, it was worded almost entirely in terms of amendments to the 1993 Act and hence it was practically impossible to follow.

“By contrast the Charities Act 2011 puts everything together in a logical order.  The 2011 Act is more than just an editorial process of bringing together amendments - many provisions have been restated in clearer language, complex cross-references have been sorted out, the language is inclusive, and much more.”

He went on: “The Charities Act 2011 will, I believe, be a real breath of fresh air for the understanding of charity law and regulation in England and Wales in the same way that the Charities Act 1993 did some eighteen years ago.”

But he also pointed out that the 2011 Act does not restate the law on fundraising, as existing legislation is not just applicable to charities - it includes other fundraising for good causes.

“So the fundraising provisions of the Charities Act 1992 and Charities Act 2006 will continue to apply - although in both cases the rules on public collections have not yet been implemented.”