What is the distinguishing characteristic of Private-purpose Trust Funds?

Private-purpose Trust Funds are specifically designed to provide benefits that are limited to specific private purposes. This characteristic sets them apart from other types of funds, such as those intended for public purposes or charitable activities that serve the wider community.

In the context of governmental accounting, these funds manage resources meant for the benefit of particular individuals, organizations, or groups rather than the general public. This could include situations where asset management is governed by a trust arrangement designed to fulfill specific obligations or purposes dictated by the terms of the trust.

The other options do not accurately describe Private-purpose Trust Funds. For instance, benefits for the general public relate more to public-purpose funds, while the notion that they can only be used for charitable purposes does not reflect the broader range of private objectives they can serve. Lastly, having no specific beneficiary would contradict the very nature of these funds, which focus on fulfilling the needs of designated recipients.