It's generally accepted that private businesses competing in a free market tend to spend money more efficiently than their bureaucratic public-sector counterparts. This leads me to wonder why we don't have "charity companies" to investigate various charities and 'good causes', etc., and determine where aid money could be best spent to do the most good. They could make a profit by charging a small fee for their investigative services. Moreover, competition would keep them honest: the threat of a new charity company down the street that gives you 'more bang for your buck' would send their profits plummeting. To attract customers they would keep open records tracking the humanitarian benefits resulting from their recommended investments. (Competitors would no doubt keep an eye out for any duplicity which could be exposed for their own gain.) Governments would no longer sink millions of aid dollars into hopeless schemes or corrupt governments' coffers. They would subcontract out their aid budget to whoever could (be relied upon to) achieve the most good.
Has anyone tried this before? And if not, why not?