Wait, I thought they are recipient of Sovereign Tech Fund. Didn't that help them with their budget?
Linux
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Linux is a family of open source Unix-like operating systems based on the Linux kernel, an operating system kernel first released on September 17, 1991 by Linus Torvalds. Linux is typically packaged in a Linux distribution (or distro for short).
Distributions include the Linux kernel and supporting system software and libraries, many of which are provided by the GNU Project. Many Linux distributions use the word "Linux" in their name, but the Free Software Foundation uses the name GNU/Linux to emphasize the importance of GNU software, causing some controversy.
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It's probably best to assume that since that funding was provided to be used with a specific focus, they didn't (and/or couldn't) use it for the Foundation's maintenance.
Likely earmarked for development.
And Gnome Foundation handles non-development stuff, like hackathons, Guadec, community outreach, liaising with other projects/governments/companies, etc. not to mention boring legal stuff like copyright of their name and icons and all that jazz.
It's basically the non-development part of the project.
For details follow the link. This is nothing more than the headlines.
Finances
The GNOME Foundation reserves policy says that the buffer is too low to run at a deficit any longer, which it has done for three years. This years budget is a break-even budget.
Strategy & Fundraising
A five year strategic plan has been prepared and a draft approved by the board. A variety of fundraising activies will be launched over the coming months.
Board Development
More directors are being added to reduce workload on individual board members. Non-voting officer seats will be added for the same reason.
Elections
Annual board elections is coming up, 6 seats are being elected.