Is private philanthropy more efficient than the state at helping the poor?

CNN today features an article talking about the corruption in America’s charity industrial complex. One of the things that has happened most recently is that many charities are funneling most of their donation money to the for-profit fundraising firms they use to solicit people. CNN gives the example of the Kids Wish Network foundation which gives 3 cents out of every dollar to the kids that it raises money for, the rest going to consultants and for-profit fundraisers. One of the basic assertions of the Reagan era of the last three decades has been that private philanthropy is always better than the government at taking care of people in need. I’m pretty sure that even the least efficient government bureaucracy can do better than 3 cents on the dollar. It seems like the profit motive does a plenty good job of creating corruption and waste. Capitalism at its finest!