But I'm not sure it's a bad thing for SIAI to be using contest labor.
My point wasn't that it's a bad thing for SIAI to do, but that I felt that if SIAI is going to do it, it's important to discuss the issue from an artist's perspective as well. Without that discussion, the contest encourages both businesses and artists to participate in contest-labor. And while it may be rational to try and get as much free stuff as possible, it's not rational to give away free stuff. Less Wrong shouldn't be encouraging people to do irrational things.
Edit: in case it's still unclear, I'm talking about Less Wrong encouraging (by omission of a more involved discussion) artists to participate in contests that are NOT charity oriented.
I also think it's somewhat shaky to encourage people (clients) to do things that are only rational because they make it easy to take advantage of people's irrationality. I wouldn't say it's wrong per se, but it's something that's cause me to pause and evaluate the surrounding issues.
If you have graphic design experience, check out the on-going logo design competition at 99designs for the Singularity Institute. There are still 6 days left to enter and be eligible to win the $295 prize if your design is selected. Tell your friends with graphic design experience too. There are very few submissions currently.
Note: This is a blind contest. Designers can only see their own entries. All designs will be revealed when the contest ends.
If you're interested at getting a peek at the designs, they will be online after the competition is over. This is standard practice in 99designs contests to prevent designers from contaminating each other and having all the designs drift in a certain direction.