What is a primary goal of not-for-profit organizations?

A primary goal of not-for-profit organizations is to provide public or community benefits. Unlike for-profit entities that focus on generating profits for shareholders, not-for-profits are structured to serve the needs of the community or a specific group of individuals. They prioritize social, educational, or charitable objectives over financial gain. This means that any surplus revenues generated by the organization are reinvested into programs and services that further their mission, rather than distributed as profits.

Not-for-profits often address issues such as health care, education, arts and culture, and community development, aiming to improve the quality of life for people within their communities. Their success is measured by the extent to which they fulfill their mission and serve their community needs, rather than by financial metrics like profit margins or stock prices. This mission-driven approach is fundamental to the operation of not-for-profit organizations.