Charities that have incomes of less than £250,000 and which use online services - for example, by filing their annual returns and accounts via the regulator's website - are entitled to enter a monthly £1,000 prize draw.
The scheme was introduced in June 2006, but the commission has not promoted it before. It has published a list of previous winners on its <a href="http//www.charity-commission.gov.uk/common/winners.asp"website</a> to encourage more charities to take part.
"This is the start of a concerted campaign to get small organisations to use the web," a spokeswoman for the commission said.
She defended the decision to use a cash prize despite the continuing financial squeeze at the regulator. "We're doing it within our budget, and we know from working with small charities that £1,000 is a lot of money for them," she said.