What is a defining feature of a charity?

A defining feature of a charity is that it is established for a public benefit purpose. Charities are typically created to address social issues, support community development, promote education, provide relief to the disadvantaged, or foster cultural initiatives. This core objective of serving the public good distinguishes charities from for-profit organizations, which are primarily motivated by financial gain.

In contrast, the other options fail to represent the values and functions of a charity. For example, operational profit for board members does not align with nonprofit objectives, as charities do not distribute profits to individuals but rather reinvest them into their mission-driven activities. Focusing strictly on commercial activities contradicts the fundamental non-commercial essence of charities, which prioritize social impact over profit-making. Lastly, claiming that a charity is limited to small-scale operations is misleading, as charities can vary widely in size and scope, operating on both local and global levels depending on their mission and resources.