What is often characteristic of organizations in the not-for-profit sector?

Organizations in the not-for-profit sector are primarily characterized by their focus on community benefit. Unlike for-profit entities that prioritize generating revenue for shareholders, not-for-profits aim to serve a specific purpose that contributes to the welfare of the community or society at large. This may include providing social services, advocating for a cause, or promoting education and the arts. The central mission of these organizations is to address various social issues and improve the quality of life for individuals or communities, rather than to maximize profit.

This emphasis on community benefit reflects the core values and goals of not-for-profit organizations, distinguishing them from other sectors that prioritize financial gain and shareholder value. Additionally, while some not-for-profits may receive government funding, they are not exclusively run by the government, nor do they function solely as businesses. Their operations are often driven by mission-based objectives rather than business strategies focused on profit.