What we do is call around to local cinemas, bowling alleys and restaurants and ask for gift certificates.
Sometimes we get a lot of them and that helps us give out more prizes.

We have done this for years - prizes, even inexpensive area great motivator!

Here is basically what we do for our annual jogathon - just now wrapping up 2013's with over $45K in donations! (303 kids, 11 classes)

Top boy/girl lap runner in every class - medal
Top individual fundraiser - 1 per class - medal and logo hoodie
Top fundraising class - Playground party (extra recess, popcorn machine, music)
Any class with 100% participation - BBQ lunch
Raffle - each $25 pledged = 1 raffle tix for prize drawing (prizes are procured)

We also have weekly incentives from bringing in a new pledge (we do this for 3 weeks prior to the run).

You can see our updates and prizes at www.htsch.org/titan-run

Hope this helps a bit!

I can't attest to the cost effectiveness of it, but I'll tell you what we do. Sometimes we have a party for every student who raises a certain amount (bouncy house and stuff like that in the gym).
For raffles, the person who sells the most tickets gets a hot-item prize, like a ipod touch or something along those lines. Sometimes the top sellers get a limo ride to the fun pizza place in town.

We're having our first fun run with the students in our school to raise money for a new swing set. In the past, we've only had the prizes that whatever fundraising company we use offers. We'd like to offer some prizes this year to help raise more money. We are thinking one prize for the student who raises the most money and a prize for the child in each class that raises the most. We're not sure what to offer for prizes, any ideas?