The Argument for Form 1023

Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code

An organization is eligible to use From 1023-EZ if its assets are valued at $250,000 or less, and it has annual gross receipts of $50,000 or less.

Step Away from the Microwave! IRS Rules That Organization Formed to Protect Citizens from 'Mind Control' Attacks Is Not Exempt :

Had the new streamlined procedures for small organizations to apply, using Form 1023-EZ,9 for tax-exempt status under §501(c)(3) been in effect, it is likely that the organization described in PLR 201430014 would have sailed through the exemption process with little or no scrutiny. 

Also,

Indeed, while one might have some sympathy with the intent to compensate the victims of "mind control," the fact that the scientific basis for the purported existence of "M attacks" appears to be about on a par with the scientific evidence supporting the existence of , e.g., Sharknados, seems to have doomed Taxpayer's application.

Has Mind Control Conspiracy Captured IRS? :

I’m thinking that there might be a little bit of bias in the ruling that Defender is not educational and the notion that because Ernie is one of the victims of M attacks working for compensation for M victims constitutes inurement. If Ernie is right, you would think that the IRS is one of the first places the people doing the mind control would take over, so that might account for the adverse ruling. Of course I would also not rule out Funhouse running a scamming operation and Ernie being a whackadoodle.

Funny stuff right there.