Sorry if I used the wrong term but a label asking for money before producing the music seems like crowd funding. I can't help but think this indicates lack of support for the winner.From more that I'm looking and reading the "crowdfunding" is being treated as a store. Still not a good way to handle it.
Here is the link to the pledge page. The last item of getting your name on the liner notes really makes it sound like crowd funding.
http://www.pledgemusic.com/projects/11863
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