The term transformative was specifically chosen to highlight in the nonprofit organization’s name one of the key legal defenses for fanworks of all kinds (including real person fiction): that they are transformative of original source materials.
A transformative use is one that, in the words of the U.S. Supreme Court, “adds something new, with a further purpose or different character, altering the [source] with new expression, meaning, or message.” A story from Voldemort’s perspective is transformative, so is a story about a pop star that illustrates something about current attitudes toward celebrity or sexuality.
The courts have also analyzed “right of publicity” claims against creative works by using the transformative use test from copyright law, so this also applies to one of the main legal issues real person fiction faces. Because one of our primary goals is to defend the right of fanworks to exist, having a key defense for them in our name is important to the organization.