My understanding is they only scan for content if it's being uploaded to iCloud. Scanning on the phone, yes, but only if the image is to be sent over the network.
Ah, but CZI is not a non-profit, it's an LLC, making it an even more efficient vehicle for legal tax evasion, PR, and power. It also allows Mark and Priscilla to make funding decisions affecting entire communities on a whim, without the involvement of cumbersome board members.