Another thing missing is the procedure when multiple members recuse themselves from a decision. It seems important:
(a) that decisions are always made by more than one individual
(b) that applicants are not disqualified from receiving grants on the grounds of (e.g.) having COIs with multiple fund managers.
It is also worth thinking about COIs when it comes to board composition. Having multiple board members that are more isolated romantically/socially/geographically from the Bay Area scene would make the fund more robust to COIs, particularly if the standards for recusal are raised.
I agree this would be a very bad outcome, and I’m surprised you think it is a possibility. Individuals/organisations should not be precluded from receiving LTF grants due to their personal lives, particularly if LTF continues to be the major funder for certain types of grants. I think the onus is on LTF to find a way of managing COIs that avoids this, while also having a suitably stringent COI policy.