Seriously now - I really don't want to talk down to someone who wants to further the sport but I'm having a really difficult time reading the intentions of this event. The "My race, my rules" comment is brash and bordering on juvenile. It makes me wonder of what maturity the person is that is trying to put this race together and why...but I'll try to be constructive.

To better understand what you are trying to accomplish - WHY are you trying to put this event together?

A couple more comments:

+I think competing in a cash event and organizing it are 100% in conflict

+The suggestion to have an escrow company handle the funds is a good one. Do so with a defined committee and bylaws is the only way to handle people's money and ensure a degree of fairness to those people. The escrow company basically handles the issuing of funds based on a set of rules and requirements that both parties agree on (a contract). If one person in the contract fails to meet their obligations usually an alternate resolution would likely be predefined. You can draw up a contract that says the organizing body gets 10% of the race funds or a set figure or whatever...you can also guarantee that if a certain number of entrants aren't received by a certain date that the entire entry fee will be returned in full or in a certain percentage. The escrow company actually handles the funds and acts as an unconflicted 3rd party.

"My race, my rules" is a great way to ensure that you are racing alone.