I don't see the problem. Its an all volunteer org and not even a formal non profit at this point as I understand it. They're planning to use donated developer/s

I don't see the problem. Its an all volunteer org and not even a formal non profit at this point as I understand it. They're planning to use donated developer/statistician/visualization designer time to help other non profits make better sense of their data at no cost. Naturally being 100% donated time based they're looking for the same kind of help from a logo designer — one that supports their goals and wants to help, doesn't care about getting paid. The prize struck me as a just to make the contest a bit more interesting factor.