Which considerations must a business operating as a charity keep in mind?

A business operating as a charity must primarily focus on obtaining financial support through donations and endowments. This funding model is essential for charities, as their primary objective is to further their mission rather than generate profit. Donations from individuals, corporations, and foundations often make up the bulk of a charity's income, allowing them to fund programs and services that align with their philanthropic goals.

In contrast, focusing on sales and profits is more characteristic of traditional businesses that operate for financial gain. Offering paid consultations, while a potential avenue for revenue, is generally not the primary focus for charities that aim to provide free or low-cost services to their target populations. Investing in stock markets could pose risks that are not typically aligned with the conservative funding practices preferred by charities, which prioritize stability and risk management to maintain their operational funding. Thus, the reliance on donations and endowments is fundamental to a charity's sustainability and effectiveness in achieving its mission.