A "not for profit" entity is required to operate “profitably” in order to preserve it's solvency, in the same manner a commercial “for profit” entity generates profits.
A "not for profit" entity generates financial surpluses, whereas a “for profit” entity generates profits.
The difference is that a "not for profit" entity is not permitted to distribute it's surpluses to Members by way of dividends or other benefits, but must re-invest it's surpluses in the services it provides. A “not for profit” entity is not subject to company profits tax but is generally subject to all other taxes and duties, including GST, payroll tax etc. Certain ATO approved charities, generally in health or religious services, operating as "not for profit" entities (but not all) may enjoy FBT benefits which are generally passed to staff by way of a higher PAYG tax threshold.
Both “not for profit” and “for profit” entities generally managed their operations on similar business principals.