It's basically an educational institution. (Not saying that it's any good at what it does, mind you ...)
“You guys understand that the “Linux Foundation” doesn’t control the linux kernel or its development, etc., right?”
Exactly right! but they are accepting donations from MS and others to hamper and slow the advancement of Linux.
They need to either get back behind Linux or get the hell out and stop using the Linux brand name for their operations.
It is criminal fraud and misrepresentation by the very definition. And IRS fraud to boot. If a church tried to get away with this for tax breaks they would be shut down in a heartbeat.