The pros and cons are both related to a thing that many people don't think about when it comes to non-profits: money.
A foundation's job is to administer money. The pros are that well, someone has to do that work. Collectivizing helps; a random person giving $10 once isn't worth the management overhead, but 10,000 people giving $10 (or whatever) means you have a more substantial chunk of money. Additionally, projects also need things like legal support, which a foundation is well-set up to manage.
The cons are, well, that work is hard, and you can also end up in a position where you spend as much time fundraising as you do actually improving the project. This is why people talk about "efficiency" in non-profits, ideally these tasks take as little money as possible to do the administration, and spend as much as possible on the project. Also, when you're in the business of distributing money, you have to manage people's reactions to how you spend it, some people are going to be upset that you picked project A over project B, or person A over person B. That's also a form of overhead.
(and I'm not talking about MoFo here, I know very little about it or how it works. This is based on experiences with other non-profits and foundations that I've experienced and/or heard about elsewhere, and from lots of other people.)
The cons are, well, that work is hard, and you can also end up in a position where you spend as much time fundraising as you do actually improving the project. This is why people talk about "efficiency" in non-profits, ideally these tasks take as little money as possible to do the administration, and spend as much as possible on the project. Also, when you're in the business of distributing money, you have to manage people's reactions to how you spend it, some people are going to be upset that you picked project A over project B, or person A over person B. That's also a form of overhead.
(and I'm not talking about MoFo here, I know very little about it or how it works. This is based on experiences with other non-profits and foundations that I've experienced and/or heard about elsewhere, and from lots of other people.)