You asked a good question. I'm a native speaker of English, but I can't understand the McGraw text. Here's a piece on the gerund that I wrote recently. I hope it helps you. (If you'd like more information on the gerund, especially info on what verbs take gerund objects, please contact me on my email.)
The English Gerund, for ESL Students of Reading, Writing, and Grammar
This paper offers a description of some features of around 330 English gerunds occurring - some more than once - in a total of about 445 sentences containing those gerunds. The sentences are from two copies each of the Book Review and the Magazine of the Sunday New York Times, all from April 2008.
Each gerund functions as a substitute noun/pronoun, or as substitute adjective, and has in these sentences one of five different roles as a component of a clause or as a component of a prepositional phrase. Those five roles are sentence subject; subject complement (also known as a predicate nominative); direct object; attributive modifier of a noun [like an adjective] ; prepositional object in the prepositional phrase. (Of the 445 sentences with gerunds, about 360 - around 80 percent - had the gerund occurring as the object, or the chief word of the object, of a preposition. Examples of each type are given below.
In addition to its role as a noun-like component of a clause or phrase , or as the chief word within that constituent, the gerund usually performs within that component a basic verbal function - that of transitive verb, intransitive verb, copulative verb, or passive or perfective auxiliary verb . (The progressive aspect would be unacceptable with the progressive auxiliary be used as a gerund [I like being working here]; thus the progressive auxiliary verb does not occur as a gerund. And the modal auxiliary verbs do not occur as gerunds because they are always and only finite verbs – the first in a string of verbs - and consequently have no -ing form.) The dual nature of the gerund ─ noun-like sentence part, and at one and the same time behavior as a verb within that same noun-like part ─ is something that should be pointed out to the students. (See the suggestion for lessons preceding the Appendix.)
Subject of the sentence 1) <Hiking is good exercise.> 1A) <[Hiking in the woods] is good exercise.>
Direct object <I like hiking.> <I like [hiking in the woods].>
Subject complement <My favorite exercise is hiking .> <My favorite exercise is [hiking in the woods ].>
Object of a preposition < She’s fond [of hiking]> <She’s fond [of hiking in the woods].>
Attributive modifier of a noun < a hiking trail> <a cutting board> <a wishing well>, etc.// An attributive gerund is usually slightly louder than the noun that it modifies.//
Student or Learner