The first nonprofit organizations emerged at the time of the ancient Greeks and Romans. Although their significance has changed throughout history, they are one of the most important segments of every society because their activities, independent of political influences, encourage the growth and development of society. Without non-profit organizations, many humanitarian initiatives would never come to life and like-minded citizens would not have the opportunity to join forces in improving the current situation and striving for a better environment. By their very nature, they are set up to improve human life, are important to the quality of life in a society and stand in the service of society. The goal they are established with is not, and must not be, the sale of goods and services on the market for the purpose of gaining profit. Nonprofit organizations in Croatian legislation are regulated by the Laws, according to their types. These Laws define each type of a nonprofit organization, and prescribe their operation. If a nonprofit organization, however, operates profitably, i.e. it generates profits not invested in improving the work of the organization, it is obliged to calculate, state and pay the tax liability according to specific legal regulations. In accordance, nonprofit organizations are not only beneficiaries of the state budget through donations and grants but are also participate in the state budget revenue by paying taxes. The Laws on Income Tax and the Value Added Tax define the cases where nonprofit organizations are taxpayers and thus indirectly affect the extent to which they will be found on the revenue side of the state budget.