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Hey- like smgdancer I have never organized one, but there are a few of these types of things that go on on my campus each year. Some ideas for you:
-In order to raise more money, you can open up fundraising efforts to the competitors themselves. For example, start publicizing EARLY and close entries 2-3 weeks before the competition. Have the competitors dormstorm, table, write letters, or make phone calls to get donations. Whatever money they raise beforehand will be combined with the money that is raised for them during the show (via audience donations). Judges can take their fundraising efforts into account when they make their decisions, and the $10 entry fee can go towards your administrative needs should you need more budgeting.
-I like the idea of "sister deeds" as prizes; also, sometimes campus foodservice or the campus bookstore are willing to donate gift cards or meal passes as prizes for charitable events. I chaired a benefit concert this spring, and most of our raffle prizes were donations from local businesses: gift cards, gas cards (big hit!), free oil changes, baked goods- use your imagination and ask around.
-I like your entry categories. The categories I have seen used are: talent, swimsuit, togas (if they are Greeks!), formal wear, cross-dress and questions. Some of these can be combined: for example, a Q&A session while dressed in togas or formal wear. Three events usually seem to work pretty well- long enough to raise donations, but short enough to hold the audience attention.
-Consider asking the participation of an on-campus performance group, such as an a capella group or a dance group, to perform near the end of your show (after the last event, before announcement of the winner). This will draw in some extra people, give you time to count money or for judge deliberation, and the performing group will also likely help out with your fundraising efforts.
Sorry for the novel- I wish you the best of luck, let us know how it goes! =)
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