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No, it isn't appalling. The guy running it for the pricely salary of $28k/year was somewhat unsuited to the job, but hey, that's what you get with shoestring operations. If you think you can do better, then step up to the plate, don't just throw mud at people who actually did something.
The Free Software Foundation supports some free-software development (and develops a lot of free software itself). Maybe - after some kind of opinion poll of cardholders, of course - title to these accounts could simply be turned over to the FSF?