Developing a strong presence on social media outlets is a proven marketing tool for businesses and non profit organizations. Increasing awareness for your cause, making it easier for supporters to donate time and money, and promoting events are just a few ways that Facebook and Twitter are used successfully by non profits every day.

And now, social media savvy non profits have an advantage—by spreading the word quickly, they can compete for cash through America’s Giving Challenge, a daily giveaway that rewards causes with the highest number of donations each day through November 6, 2009.

Non profits that connect with supporters through a regularly-updated website, blog, email newsletters, and on social media sites like YouTube, Facebook and Twitter have already built the infrastructure that allows them to take advantage of a contest like this. Causes was built on Facebook, with the sole purpose of putting power, in the form of dollars, in the hands of the people. Every 24 hours, whichever charity gets the most donations—of any amount—gets $1,000. Second highest number gets $500 each day.

The grand prize for the contest awards $50,000 to the non profit that gets the highest number of individual donations. Second prize is $25,000, and $10,000 goes to each of the next five causes.

It’s easy to sign up your cause, donate to a cause, and see how the contest is going. (Today’s leader is Overseas China Education Foundation, with 101 donations.) Set a goal for your organization to gather 100, 150, or 200 small donations, and you could be in the running for the $1,000 daily prize. And the way social marketing works, you could soon see thousands of donations for your cause, along with increased awareness, more volunteers, and engaged supporters!