Nope. What is to keep people from creating multiple accounts or "Fursonas" just to get free stuff?

Who cares? Art is being funded and created. If they go through the trouble of creating a character which is distinct enough from their main fursona then they are actually adding to the creative process. Furthermore, if they go through the trouble of trying to get free stuff then they probably can't afford stuff and deserve to benefit from a program like this anyway. Thirdly, the 'foundation' would be run by thinking beings who know and are part of the community, and who can make their own judgements and take responsibility for their actions.

TL:DR It's pointless to worry about such things, lets get some art funded.

Yeah, pretty much what Ifritx said. I've had a lot of experience in the charity industry and this is such a rare problem that it doesn't outweigh the benefits of doing the whole operation.

I'd be interested.

I'm with both Axle and Ifritx on this, somehow >v>

That seems like an interesting idea. I figure it would feature both clean and "dirty" artwork?

Yeah, I figure it's a pretty defining feature of furry that sexuality is a legitimate form of expression, so it certainly wouldn't be restricted to clean art. Obviously we'd only give porn to people who want it, though.