My guess it that the loss of the Watchtower's charitable status will bring about the decline and fall of the JW organization. Without government subsidies and tax exemption it would be difficult to maintain the Borg's New York headquarters, printing facilities, video studios, translation homes, and GB members life-style.
Think about what the Borg would have to pay each year for the property taxes and assessments on the New York headquarters compound, video studios, and all the KHs. Plus most donations would be considered taxable income.
To pay for these new expenses would the Borg adopt tithing like the LDS Church? But the Mormons encourage education and many of them are professionals with a comfortable income. Since the Watchtower discourages college and university education, most rank and file JWs are working class and don't have a lot of cash to spare. So forcing a cash strapped family to turn over 10% of their income to the Watchtower could cause more JWs to lose heart and exit the Borg.
While these possible government actions might not destroy the Borg, the Watchtower's loss of charitable status would hasten its decline into insignificance.
However, to keep their charitable status the GB could come up with New Light and abolish shunning, discard the Blood Doctrine, and engage in real community service. This might keep the government subsidies, but also cause the Borg to loose control of the rank and file. It would also make the JW religion more mainline. If the JWs became a mainline church would the membership increase or decease?
Anyway these are my thoughts on a rainy Saturday afternoon.
Happy New Year everyone,
Athanasius