What is the primary purpose of a nonprofit corporation?

The primary purpose of a nonprofit corporation is to perform charitable, educational, or scientific work. Nonprofits are established with the goal of serving the public good rather than generating profits for shareholders or investors. They often focus on causes such as poverty alleviation, education, health care, environmental protection, and community development. This mission-driven approach allows nonprofits to reinvest any surplus revenue back into their programs and services, rather than distributing profits in the form of dividends. This structure differentiates nonprofits from traditional for-profit businesses, which prioritize maximizing financial returns for their owners or shareholders. By adhering to their missions, nonprofits play an essential role in addressing societal needs and contributing to the community.