Sure. But there are a lot of other tax advantages. For example, at least where I am, non profits don't pay sales tax on purchases, and don't have to pay into unemployment funds. I'm sure there is more, but I'm not super familiar with this world.
> Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as distribution costs and sales force costs.