So, with the donations the artists will be paid, and the developers are expected to do it for free. What's up with that mindset?
I think there a prizes for winners of both phases. I guess they may need to commission some artwork for the first phase to fill in submission gaps as the second phase is rather dependent on the art generated in the first.
Also I think it somewhat matches the differing mindsets of coders/artists, in my experience artists seem very protective of their work and feel they must be compensated for its use. Programmers on the other hand, tend to have difficulty convincing people to use their code.