[mattmanser]

It's literally what the company setup means. You can allege that people in every non-profit are committing fraud, but it's not a misnomer.

[prasadjoglekar]

A better way to phrase the parent's frustration is to say that "non profit" is strictly a tax status.

Colloquially, we have expanded the meaning to mean a charity or other selfless endeavor.

No doubt many non profits do perform charitable acts, but plenty more are just glorified tax shelters.