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Microsoft donates the Mono Project to the Wine team
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Distributions include the Linux kernel and supporting system software and libraries, many of which are provided by the GNU Project. Many Linux distributions use the word "Linux" in their name, but the Free Software Foundation uses the name GNU/Linux to emphasize the importance of GNU software, causing some controversy.
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Yes, Mono is used by Wine to support Windows .NET applications since it's a) open source and b) contains support for Windows Forms and other Windows-only APIs.
They can't ship the regular .NET framework by default for licensing reasons but it can be installed with winetricks to replace Mono, which is sometimes necessary for compatibility reasons.
Thanks!