I hear your concern, i.e. that - given that funding is involved - gradually the foundation, set up to be as unceremonially as possible, would still devolve into a sort of ‘traditional NGO-like’ non-profit with governance policies and boards, etc.
This is something we should explicitly think about, so it does not happen. An incorporation as a non-profit seems prudent, because that gives the option to have a non-personal bank account, plus the requirement to have an administration that is legally in order (yearly verified by an accountant).
But that’s the formal side, and it is set up similarly (or exactly, if we choose so) as an OpenCollective Fiscal Host. Other than that the way the foundation operates should align as much as possible with culture, values and principles of both the Fediverse and Free Software movement.
It may pay on an hourly rate, or even provide on a (part-time) salary basis, those that involve themselves with community chores: Doing said chores - the boring and unthankful work that no one wants to do, but is nonetheless is required to knit a community together - is the premise for creating the foundation.
In addition for many or most of community tasks, it may offer them for anyone to pick up, and collect payment for doing so (e.g. like a bounty system). One of the tasks of the foundation is to raise the money that’s needed for all of this.
This is a bit cryptic, but assuming that with “dancing elephants and paper planes” you refer to federated applications…
Yes, that might be a very inspiring project to pursue as part of #fediversity:fediverse-futures and progressed by the foundation itself in her Roadmap. But it should not withhold us from starting with a KISS approach as just described: a non-profit, well-thought-out organisation, a website, and funding structure, all supported by using existing software.
That “normal” would indicate a failure to properly organize. I recommend reading 11 Practical Steps Towards Healthy Power Dynamics at Work | by Richard D. Bartlett | The Tuning Fork | Medium mentioned by @calummackervoy above, that - I also think - provides very good handholds to guide us.