Besides this, I don't see why they would need to convert their status. There are almost no restrictions on running a non-profit, beyond not having "owners" or paying dividend.
The restrictions only apply to non-profits that want to be tax-exempt by the IRS. If you aren't considered charitable enough, then you just pay taxes as usual, but nobody is going to force a shut down of the non-profit because of that.
There is some maximums in the law that make non-profit status problematic. I worked for a non-profit that had for-profit parts because they had exceeded some of the limits. I'm pretty sure (although its been almost 20 years) that the problem was number of employees and their salaries.
The restrictions only apply to non-profits that want to be tax-exempt by the IRS. If you aren't considered charitable enough, then you just pay taxes as usual, but nobody is going to force a shut down of the non-profit because of that.