FOSS is not just code pushed to git. FOSS, like many other things, is a large ecosystem which involves communities and people, design, research, data, legal/policy work (licenses, the most fundamental building block of FOSS, are legal works). IFF for example isn’t a FOSS project, but an organisation that engages in tech/data policy and legal work that has strong ramifications for FOSS. Similarly, TinkerSpace is not a FOSS project, but a physical hackerspace for FOSS learning, mentoring and community building.
This would be an ideal outcome! The need for tech volunteering in the social development sector - #65 by Shubham_Gupta is an attempt at this for building a support network for FOSS projects in the social development sector.
Absolutely. A FOSS grant/fellowship program is essential in my view. A significant majority of great FOSS projects start out as individual hobby or side projects. We have in fact given out multiple grants to idie FOSS developers with promising side projects in the past.