The definition of Profit is Income Less Expenses, this "Profit"...

The definition of Profit is Income Less Expenses, this "Profit" is usually called a Surplus in charity's accounts.

A charity depends on donations coming in to have the money to carry out its charitable objectives, and a problem most charities face is that donations don't come in every month, so, in some months they have to rely on the surplus they make in previous months to have the money to carry on.

This applies from one year to another. In one year it may receive some huge donations which result in a surplus for that year. The next year it may receive minimal donations, and that is when the previous year's surplus comes in handy.

For the government to tax a surplus, thus reducing its cash, is reducing the charity's ability to survive.

You will find that as part of the conditions that it is exempt from income tax, its Articles of Association has to prohibit the distribution of surpluses to members. This is to prevent members from using the tax free status as a vehicle to make profits for themselves.

Just my opinion.