Making a “career” working for “non-profit” organizations is a bit hypocritical in my mind. Often these people make 6 figure salaries. I remember one of the Kennedy making over $300K a year by heading a non-profit to provide heating to low income people. This guy sounds very noble but many non-profits are a sham run by liberals to bilk taypayers out of money. "Non-profit" only means there are no shareholders getting profits. People who work for "Non-profits" often do very well indeed.
A friend figured out how to make his business a non-profit. Works absolutely wonderfully for him.
You're right, it doesn't just apply to government handouts. But it's a way to avoid paying taxes.
I'm not necessarily criticizing the process. Just those who, like this guy, sounds so sanctimonious about working for a nonprofit while criticizing conservatives for not working for a nonprofit.