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You don't get more loot from it (-->currency and divination cards don't drop more often). That is defined by "quantity of items"
Magicfind is calculated from the kiling damage, so you can't just add up each players magic-find. Groups will often use a culler that finishes off the mobs and has very high magic-find and nearly no damage. That player uses the "Culling Strike" modifier on his or her skills to kill monsters below 10% hp instantly. They tend to be builds with very high frequency of applying damage though, to get more last hits (e.g. through high attack speed).
When that modifier iir is a gem, it only works on the supported skills, just like any other support gem.