What is a defining feature of nonprofit corporations?

Nonprofit corporations are primarily distinguished by their commitment to serving the public benefit rather than focusing on profit maximization. The primary goal of these organizations is to fulfill a mission that benefits the community, such as providing charitable services, education, healthcare, or the arts. Any revenue generated by a nonprofit is reinvested into the organization's mission and programs, rather than being distributed to shareholders or members as profits. This characteristic ensures that nonprofits operate with a focus on societal impact, which is a core tenet of their structure and operating principles.

In contrast, for-profit businesses typically aim to maximize profits for their owners or shareholders, leading to differing operational and strategic priorities.