Let me ask you something, if you gave a person funding, say a family member, and they decide to use the money for something else than what you both agreed on , would you still keep on giving that family member money?

Or would you sit them down and tell them no more money until you (the funder) sees results that you were anticipating with the money?  

Private foundation money is not like grant money from the government. The foundation itself has it's own reasons for giving the money in the first place, and is obligated by its philosophies of what that money will do to keep track and determine if the funds are going to a cause they believe in.

Like with the hypothetical, the foundation figured out that its money was not going to the cause it believed in, only figuring that out after the agreement was made between it and the DOE. So they had a sit down and a talk-out about what this money can be used for, and what it can't.