What is a characteristic of non-profit organizations?

Non-profit organizations are primarily designed to serve a public or community purpose rather than to generate profits for owners or shareholders. A key characteristic of non-profits is their reliance on support from donors, which can include individuals, corporations, foundations, and government grants. This financial support is vital for their operation, allowing them to provide services or engage in activities aligned with their mission without the aim of making a profit.

In contrast, some of the other characteristics presented do not accurately describe the nature of non-profits. For instance, the idea that they require government funding is misleading, as non-profits can operate independently of government funds. Additionally, non-profits do not operate for profit; instead, any excess revenue generated must be reinvested into the organization's mission. Finally, being regulated by for-profit entities is not a typical characteristic of non-profits, as they are governed by their own regulations and often overseen by specific government bodies that ensure they adhere to guidelines for charitable organizations. Thus, the reliance on donor support is a fundamental aspect that allows non-profit organizations to sustain their operations and fulfill their goals.