A nonprofit corporation typically provides limited liability to its members. This means that the personal assets of the members are generally protected from the debts and liabilities of the nonprofit organization.
Nonprofit corporations are established for purposes other than making profits for investors or paying dividends to shareholders. Instead, they are formed to pursue a specific mission or charitable purpose, and any surplus funds generated are typically reinvested in the organization to further its mission.
On the other hand, providing unlimited liability to its members would be more characteristic of a sole proprietorship or general partnership, where personal assets are at risk for business debts and liabilities.