Which of the following is a characteristic of not-for-profit organizations?

Not-for-profit organizations are fundamentally different from for-profit entities in their objective and operational framework. A defining characteristic of not-for-profit organizations is that they operate without the intention of making a profit for distribution to their members or stakeholders. Instead, any surplus funds generated by these organizations are typically reinvested into the organization's mission and activities that benefit the community, serve a specific cause, or further the goals of the organization itself. This approach underscores their commitment to a social mission rather than financial gain.

In contrast, organizations that distribute profits to shareholders or prioritize shareholder profit focus on generating returns for those who have invested in the company, which is not aligned with the principles of not-for-profit entities. Similarly, operating exclusively for mutual gain is inconsistent with the not-for-profit model, as these organizations are not structured to primarily benefit their members financially. Thus, the focus on operating without profit for their members aptly captures the essence of not-for-profit organizations.