as regards Part 1 I have the following additions to bring to our attention:

1. I have heard from high officials of the cult and Rawat himself that they changed the church status because of tax / financial reasons. 

2. not being called a religion, in the "corporate" and "humanitarian" phase of Prem Rawat's cult, made the cult less honest since Prem asked his followers to lie about the religious core of the movement in order to fool the media and the public (to better do "propagation", and the organizations could be called fraudulent since they present another "public image" , a fake image, consciously  asking the initiated followers (premies) to lie about the actual religious belief system promoted by Rawat and the organization and leader's past.

Thank you for quoting the concern about the safety of children around Prem Rawat, because Rawat is a religious cult leader who has set up a cover-up organization around him based on his followers "devotion" to him.

Do they cover up their Master even when he is sexually molesting his own children?

It seems they have already done so and they are keep on doing so.

Would they cover up their "Master" sexually molesting his grandchildren?

Based on the cult's track record they would...