Which statement best describes non-profit motives?

• A. Motive is profit oriented
• B. Motive is not profit oriented
• C. Profit is distributed to founders
• D. They must guarantee personal liability

Answer: (B)

Non-profit motives are driven by a mission to serve a public benefit rather than to generate profits for owners. In these organizations, any earnings are reinvested back into programs and services that advance the mission, not distributed to private individuals or founders. That distinction—focusing on impact and public good rather than personal profit—is what sets non-profits apart from for-profit entities.

Profits being distributed to founders would violate the nonprofit structure, since private individuals aren’t meant to receive profits. And while liability protection can be a feature of nonprofit entities, that relates to legal risk, not the motive behind why the organization exists. Thus, the statement that best describes non-profit motives is that the motive is not profit oriented.