There would be another, very serious consequence. The NAACP, like many other so-called "charities," is an active political organization, although it is a 501(c)(3) organization. 501(c)(3) organizations are generally prohibited from supporting or opposing political candidates (an absolute prohibition) and are more generally prohibited from lobbying, subject to a group of complex conditions and formulas. A 501(c)(3) organization gains a tremendous double benefit from that status: 1) the people and organizations that contribute to 501(c)(3) entities are allowed to deduct those contributions from their taxable income and 2) a 501(c)(3) doesn't have to pay taxes on any "profits" it makes from activities related to its charitable purpose.
Thus, although the NAACP might not have any "profits" to be taxed even if it were a for profit organization, it would still be terribly injured by losing its 501(C)(3) status, since its contributors could be subject to taxes on contributions they had already made and deducted and on future contributions. Most of the major corporations in the U.S. presently contribute tribute to the NAACP and deduct it and are able to appoint members to the NAACP board. If this IRS injury goes forward, it will have a huge impact on the NAACP's contributors who, in turn, put might apply serious pressure on the NAACP to moderate its Marxist positions.
A successful IRS challenge to the NAACP will also be a powerful warning to the numerous other left wing 501(c)(3) organizations that are and have been abusing their tax exempt status and induce them to moderate their positions.
Jesse Jackson and his sons' organizations should be investigated fully.
His shake-down operations are as corrupt as corrupt can be.
I have friends, black ministers in Chicago, who have been working for four years to try and draw attention to this.
They even picket the PUSH HQ regularly. In fact, they just did it again about 3 hours ago.
The Jackson political operations here are a hollow shell. Their meetings are sparsely attended.
Our people, conservatives, are working to fill that vacuum.
They need to be taken down from the top down, and replaced from the bottom up.