Tax exemption isn't the key point in most european-like nfps. The key point is ownership. For instance the legal status of BW makes impossible that some people could incorporate it, because incorporation means that one person or a board do own the organization.
Let's make it practical with some real life example: you want to start a business, whatever, for instance a company doing carpentry, paint, construction work. You fill paperwork, put together a capital, register the corp., you buy a truck, materials and tools and you try to advert your business. You bring in/borrow the capital, you own the company, it makes benefits, you pay the taxes, pay back the bank, etc.
Now, with that simple example in mind, look at CS: Fenton/Hoffer and a couple others did put together a first version of the website. That's their initial work. Then people interested in hospex, joined as volunteers. Volunteers talked around, did advertising/advocacy job, volunteers organized meetings, technically savvy volunteers worked on the site. Also Fenton/Hoffer implemented donations.
It's man-years equivalent of marketing/pr work and years of donations, which have brought CS to maturity and visibility on the net.
And one morning you read that Fenton/Hoffer took the whole, sticked the label "My Business" on it, and sold it to investors for fat $$$.
Getting back to the small contruction business, it's like I go around and preach people: let's re-paint houses to make the look of the city better, and I make people to help on the work place, carry material and tools, visit neighboroughs to talk about the organization, I collect money to buy tools and a truck. And then one day, after years and growth, and accumulated donations which paid for the truck, the gas, the tools, and for myself, I register the whole as my own business. Then I hire some trade people and do operate a regular construction business here and there, cash in the benefit, but still keep people donating, and bearing stuff for me for free. That's CS Corp.
It's astonishing: no official complain, no lawsuit by americans in the USA. Just like if nothing did happen.


Back to tax exemption: in France for instance and similarly at other european nations, a nfp can have a side commercial activity, and make benefits out of it. If so they pay taxes ON these benefits. If not they are tax free. Legal status and tax status are two different field, yet the key point being that the organization's goal isn't a for-profit activity in the first place. So a business can't masquerade as nfp.

Your use of cult-like vocabulary is very pertinent to the CS Corp case. Think here of Scientology, and see the contrast in how it can thrive in USA but is forbidden AS a religion in France, Germany, etc. Indeed, Scientology, whatever some believers do believe, is a plain scam to enrich a handfull.
So has become CS Corp.

Summer 2011, Fenton was touring Europe to preach the reasons for incorporation. He told, it's not because lack of financing, but because in the USA, for some cryptic reasons which were never explained, the federal nfp 501(c)3 status isn't allowed to CS. Some in Europe said: well, you claim to be multi-cultural, open-minded, etc, so just move the operation into some european country. Keep your anglospeaking staff where it is, but open an address and keep office people somewhere in Europe, at a country where you will register as nfp.
Such questions were simply dismissed.