John, you have very limited knowledge of a not for profit organization.  Simple, some of their work is exempt from federal and other taxes, like certain real property taxes. Some activities that they do is subject to taxes.  It is called "other income".  Read IRS form 990.  It may help you understand the way a not for profits works. Not for profit does not mean that an organization cannot make a profit.  In fact a not for profit organization that did not have retained earning would be put of business in it first several years of its operation  Non profit only means that money obtained for their exempt purpose goes untaxed.  A non profits must make a profit to exist. Oh, and a non profit is not at alt like the government.  That is a false notion. Thank you.