It's not a claim if you don't pay tax. What is there to claim against? If you mean they can account for it (in fact the accounting standard says you must) then this is the same as every institution that keeps accounts - your local council for example. You won't pay tax on profits in a not-for-profit organisation. Does this make sense to you? So no dividend will be paid to any outside shareholder. Of course you need to run "at a profit" as a not-for-profit or you will cease trading. It is what you do with that outcome, how you reinvest that applies. What about all the other taxes though? GST , payroll tax, income tax generated by employees (this even applies to priests salaries), levy's associated with energy usage, fuel tax. Businesses have ways of minimising tax on profit - not-for-profits have more suitable ways and the obligation to tax earnings is not there.