"churches are non-profit"

I ran head smack into this garbage in the SCA - also a 'non-profit organization', where misguided people insisted that events should run at a loss...

All that phrase means is that no individual who 'owns' the organization (is a paid up member!) can get a 'share dividend from the profits' - it is all plowed back into the organization.

Such organizations may - in various countries - actually pay income tax on certain of their money making activities.