I am designing a new website for a new non-profit institute at a university. I am more of a coder than a designer, and hiring a designer would have been both expensive and difficult from a bureaucratic standpoint, so I decided to run a logo contest. The prize was $100, and I promoted the contest at several design schools in our area. We got one entry and we don't like it. Obviously, that entry wins, and that person gets the money. We put up a small amount of money and we got what we paid for. My question is, what do I say to the designer of the winning logo. Our contest rules read as follows: Institute Logo Contest Your Mission: To create a logotype containing a name and a sign for the new Institute. The logotype will be used on the Institute website and in various print materials. The Prize: $100 Design Guidelines....and so on. The problem is, we like the logo so little that we would rather use one of the logos that I developed when I thought we weren't going to get any entries at all. The prize is the money, but the contest rules state that the logo is going to be used. Have I legally obligated us to use this logo? What do we do then, put it up to meet our obligations? For how long? A day? A week? And how do I tactfully tell the designer that he won because he had the only entry, and we don't actually like his work (at least this specimen of it, for $100 he probably didn't spend a lot of time on it)? And, for future reference, other than specifying that the logo 'might' be used, what should I have done here? What would have been a reasonable prize? Do you think we didn't get any entries because our Institute's mission isn't 'sexy' (we're engineers) or was to hard to design for, or because AIGA disapproves of works on spec, or was it just that we didn't put up enough money?