Thank you for the clarification about the History Center proposal! I found that a little unclear as I was reading.
I agree that if foundations were only to fund to projects in collaborative ventures that we'd see a decrease in competition for competition's sake and greater sector-wide thinking which was the TDC's entire point with their article. I think rewards from funders as you describe here would be an interesting way of implementing this.
I proposed a kind of overarching flow of money to fund all of the nonprofits in the city, but who would regulate this and how might their biases influence the cultural sector? How would we even decide upon a regulator? Perhaps a council of sorts could be established with representatives from each nonprofit who would all have equal sway would be a way of implementing this. What are your thoughts?