Digital media and learning competition: I submitted a proposal to the DML competition. The gist of our project plan is to reach out to and support the Sugar community of educators and software developers. We are seeking resources to expose more teachers and learners to the features and benefits of Sugar and further enable its use by: (1) stabilizing the software to the point where it is turnkey; (2) working with and learning from diverse communities that seek better ways to educate children; and (3) growing the number of users of and contributors to Sugar. I made a similar proposal to the Google 10^100 program; the focus is on building our developer and user communities.
I've been known to complain about the lack of philanthropic funding for educational open source software, but the flip side of that is that you can't get receive grants you don't apply for (I would note that I haven't sought additional funding for core development of SchoolTool because it seems unlikely we'd get additional funding pre-release, i.e., we need to prove we can ship and have something other people will write grants around).
Sugar (and Sugar Labs) is establishing a good precedent here and has a doubly important role because it could become the foundational technology that other free education software could be built upon.