It's more than just a "tax-status." There are certain stipulations that non-profits can and can not do with revenue. I agree with your second statement, though generic in nature and carries no weight to the current discussion.<quoted text>
Nope, it's just a status. There are good and bad nonprofits just like there are good and as businesses.
To put it simply for you: non-profits are not in the business of generating profit. Therefore, they are heavily supported by their donors, individuals or businesses, depending on what tax code they fall under.
Instead of individuals or businesses giving that money to the government to assist in "revolutions" in the Middle East, these entities can contribute locally for the benefit of our local residents. Taxes and spending outside of our community is what has dried up the local economic cash flow. That's why some within our local workforce theoretically earn half (if not more) of what lateral positions make in other towns across the country.