However, when the organization transfers copies to other organizations or individuals, that is distribution. In particular, providing copies to contractors for use off-site is distribution.
For use off-site. Hiring a programmer off-site to maintain it isn't "use". Giving it to someone to use in
a productive way in furtherance of your business or in exchange for money would be "use".
Distribution matters because it triggers legal consequences--you need a license to distribute. The FSF can't rewrite the law. So they can't say "doing X is distribution" and then claim that doing X requires a license.
So whether the FSF calls something distribution in their own FAQ is irrelevant, unless the FSF is your lawyer and giving you legal advice.
However, when the organization transfers copies to other organizations or individuals, that is distribution. In particular, providing copies to contractors for use off-site is distribution.
https://www.gnu.org/licenses/gpl-faq.html#InternalDistributi...