L1 to Non Profit H1B Denied

Hello All

I am currently working on L1B with a Service company and have been supporting their client who is a non-profit. I have i140 as well from L1 employer and tried to convert to H1B with the non profit organization but it got denied last week & waiting to know more details about the denial. Does anyone know if L1 can be converted to a non profit H1B (they will start my GC process as well soon)? I got an RFE a week ago and USCIS questioned about the non profit status. They do have 25+ H1Bs and overall 1000+ employees so its not about the non profit organization. Any thoughts will be helpful…