Software Policy: Reconsider Circle's fiscal sponsorship sentence

The Software Policy contains the following sentence

It is intended that projects seeking membership of GNOME Circle are not already members of another non-profit fiscal sponsor organization.

The current interpretation of this sentence in Circle requirements is

• No existing non-profit fiscal sponsor

This resulted in a bunch of questions

• In which way is GNOME actually a fiscal sponsor for Circle projects?
• Can I still get sponsorships from other organizations if I join Circle?
• Can contributors to Circle projects be paid by sources like EU grants?
• What about for-profit sponsors?
• What about people paid by their employers to work on a project?
• Shouldn't this clause apply to "Official GNOME Software" as well?

One problem with possible interpretations of this clause is that Circle projects would be worse off by joining Circle. Obviously, something that we should avoid :)

As I understood, this clause was formulated around the idea that GNOME would actually manage the funds for Circle projects. But that never happened.

I think so far most people just ignored that clause. But in the long run, this should be clarified.