timtyler comments on Cult impressions of Less Wrong/Singularity Institute - Less Wrong
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So, to recap, this is a proposed part of a list of ways in which the SIAI resembles a cult. It redistribtutes economic resources from the "rank and file" members up the internal heirarchy without much expenditure on outsiders - just like many cults do.
(Eh. Yes, I think I lost track of that a bit.)
Keeping that in mind: SI has a problem because acting to avoid appearing to exist to give money to the upper ranks means that they can't pay their researchers. There are three broad classes of solutions to this (that I can see):
All of those seem suboptimal.