SV is not a geographical location in the sense I'm using it

Taking capital, using it, taking fees, and then distributing leftovers... sounds like Trumponomics

We all - the OSE donors - are donating personal savings to make this work, and are directly interested to make this org as efficient as possible. Having skin in the game is best way to keep such nonprofits accountable. There is no leftovers or fees - all investment income from donations goes to open source, except for minimized operating expenses (e.g. accounting). It is run by the team of volunteers without salaries, and we require $1000+/year donations from all directors of this org.

Are there rules on where you park the money between when you get it and when FOSS gets paid?

The README has a 2-3% gap between expected returns and outlays, surely that is not all going to accounting?

You have to give them at least some benefit of the doubt.

I have my own questions yet which I haven't materialized, about the bylaws and selection criteria. But at least they are proposing a new approach.

I'd at least give them a year tryout to see in what it materializes.

At the current state of things I'm a bit in doubts about the market, and how that will change across the year. Though, it would also be interesting, as an idea, to participate in such a process as a member.