Standard non-profit grift-- you can't take profits out of a non-profit directly, but you can give particularly robust salaries for yourself and your friends, use the funds to build powerful influence networks by directing projects, build prestigious glittering facilities, etc.

It's difficult to control because an outsider isn't in a position to know the best way to allocate funding. The best control is to not provide funding in absence of performance, which it sounds like this rule is all about.