What is a defining characteristic of a non-profit organization?

A defining characteristic of a non-profit organization is that it reinvests revenue back into the organization. Non-profits are primarily focused on serving a specific mission or social cause rather than generating profit for shareholders or owners. This reinvestment allows them to fund programs, services, and initiatives that align with their objectives, such as community development, education, or health care. The emphasis on mission-driven activities rather than profit maximization distinguishes non-profits from for-profit organizations.

In contrast, the other options describe attributes that are not characteristic of non-profit organizations. Seeking to maximize profit for shareholders is a hallmark of for-profit entities, which are designed to generate returns for investors. Prioritizing competitive salaries for employees may be a goal for both non-profit and for-profit organizations, but it is not unique to non-profits and does not define their operational structure. Aiming to limit organizational growth is contrary to the general aspirations of most organizations, including non-profits, which often seek to expand their impact and reach within the community they serve.