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 Every institution should offer large (1+ BTC) bounties that solve a core problem they or their community is having. 

Just specify the outcome you want, give a deadline (like 1 year) and award the best (not the first) solution at the deadline. 

You can do a draft period to refine the terms with additional items and remove ways of solving it that do not appeal to you.

Reasonably well paid bounties do work.