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My alma mater had a local MGC (not NALFO).
The group hosted events that (for the most part) tried to promote its member organizations (social, service, civic, etc). The council was also self-governing, so infractions could be dealt with by those "in the know" as opposed to Dean OutOfTheLoop.
Our MGC also helped with coordinating member organizations' major events (ex. ODPhi Week shouldn't run at the same as SLG Walk For Awareness). There was some overlap with smaller events, but the council helped separate major events.
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*does side bends and sit-ups*
*doesn't lose butt*
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