I've worked in both higher education (private and public) and for a national health organization – all non-profits. I think many nonprofits have a lot to learn about the best way to go about raising money. Many traditional/established nonprofits raise money very inefficiently - through events, walk-a-thons - etc, which require half of their staff and yearly operating budget. I think a leaner more efficient approach - at least to fundraising, would help make nonprofits more successful.

This sounds a lot like how a consultant works - often trying to (re)move funding from those who are traditionally winning the work.

There is always room for competition as long as you're innovative in using your found money, and good at convincing those who have the money that you're more worth it. I think that the hardest part would be winning that first defining contract, after that it's up to your own quality control.