It’s really kind of up to the people launching the fund - MAGIC is kind of a custodian and steward of money, but it’s really up to the people founding and later doing the work for the fund (not MAGIC) to decide. There’s also not a ton of history to go off of, but let me briefly go through our three existing funds and explain how they operate to give you an idea:
- The Monero Fund raises money for various projects using MAGIC as a vehicle (making donations by US-based people tax deductible). They tend to raise money for very specific things and spend it and not have much in way of reserves. They are guided by a committee of 3-5 people, and those people on the committee are elected by a body of some dozens of voters.
- The Firo fund was started with a large donation, and their work is guided by the founders and core team.
- The Privacy Guides fund serves an existing organization, privacyguides.org, and they kind of operate the same way they did before, but now they are able to raise money (which again is a tax-deductible donation for USA people), and hire employees (pay themselves and new people salaries) with benefits through the MAGIC organization.
So, it’s up to the founders and how they draft the guiding documents for the fund, and then MAGIC board will retain reto power of course as it is ultimately their responsibility to keep the organization above board and in good standing, but I think the two main benefits are: 1) donations to fund are tax-deductible for USA people, and 2) it allows developers to be hired and paid USD or other fiat as contractor or now employee.
(Sorry for slow reply)
Edit: you can find templates and other funds documents as examples here: MAGIC Fund Initial Steps