What is a major characteristic of an unincorporated association?

An unincorporated association is primarily characterized by being formed for a common nonprofit purpose. This means that it typically consists of a group of individuals who come together to pursue a shared goal or objective that is not profit-driven, such as community service, recreation, or charitable activities. Unincorporated associations do not have a distinct legal personality separate from their members, which underlines their focus on collective endeavors rather than profit-making.

In contrast, other characteristics associated with different types of organizations are not applicable to unincorporated associations. For example, limited liability is a feature often associated with incorporated entities, not unincorporated associations. Formal registration is generally not a requirement for establishing an unincorporated association, as they can be formed relatively informally. Additionally, while unincorporated associations might have members, they do not operate on a basis of ownership like corporations that are owned by shareholders. All of these aspects affirm that the defining feature of unincorporated associations is their focus on nonprofit objectives, making the correct choice about their character.