A non-profit organization is a general term associated with all types of organizations that are established with the purpose of serving the narrower or wider community. Their primary goal is always oriented towards the creation of certain social well-beings rather than material gains for the owners, shareholders. Due to the nature of their activity, which is of interest for the common good, these organizations are generally exempt from paying most forms of taxation. In addition, their work is generally funded and non-financially supported by state authorities, as well as by legal and natural persons in the role of donors, sponsors and volunteers. In other words, these organizations are not created to compete on the market and for which they have different sources of income from profit sector entities. However, this does not mean that they are not allowed to deliver certain products and services to the market, i.e. to carry out economic activities, and to allocate appropriate revenues from it. Considering that the reason for this is not in the prosperity of individuals with shareholdings, but in collecting the funds needed for the successful functioning of the organization. However, this circumstance of their pursuit of economic activity also entails the need for taxation, and that, if the non-taxation would lead to the acquisition of unjustified privileges on the market. In this case, non-profit organizations become taxpayers, but not in the same way as profit-sector companies. Namely, within the Croatian tax reform whose provisions came into force in 2017, it was arranged that these organizations, in becoming profit tax payers, fulfill their obligation in a lump sum. This option was introduced specifically for non-profit entities, provided that they do not exceed the turnover threshold for entry into the VAT system. Additionally, economic activity cannot be their only income, and should not exceed 50% of total revenues earned.