Community groups and organisations with ideas for projects that reduce the isolation and increase the mobility of older people can apply for a share of £100,000 of funding.
It wants organisations and groups, which can be as small as two individuals, to come up with new opportunities for people to volunteer their time, skills and resources to improve the lives of the elderly.
Twenty-five entries will be shortlisted and given support from Nesta to develop a detailed plan for their idea.
From the shortlist, five concepts deemed as having potential for sustainability and scale will then receive up to £10,000 and professional advice to set up and pilot their projects.
The idea that proves most effective at reducing isolation will be chosen in September 2013 and awarded £50,000.
Vicki Purewal, head of the centre for challenge prizes at Nesta, said: "We want people to submit new ideas that have the potential to reduce isolation and increase mobility of the elderly by tapping into the collective skills and resources of neighbours, family, peers, organisations and businesses."
The deadline to submit ideas to the Ageing Well challenge is 14 September. To apply, visit www.nesta.org.uk/givingchallenges.