I think it is going to create much strife this way...
A better way to do this to promote decentralization in my opinion. The terms and amount of the fund should be published and those who wish to manage it should present their team proposals for managing it. Ned could then pick the model he likes the best or spread some funds to 2 foundations and see which one can also obtain external funding. There is no reason to pretend these are public funds, when in fact at this point they would be coming from a private company. Also hopefully this group would be able to attract other sources of funding as well.
This just reinforces the current status quo. (my opinion)