In case you haven't yet heard, changes are afoot at Writer's Digest. For one thing, the magazine is now published bimonthly, rather than each month. (Keep that in mind when querying.)
For another, there's a new contest (it appears to be replacing the "Your Assignment" challenge in each magazine/published each month on the Web site). It's called "Your Story," and like the new magazine schedule, it will offer a new challenge every other month (publicized both in the magazine and on the Web site).
Here's the deal: "We'll provide a short, open-ended prompt. In turn, you'll submit a short story of 750 words or fewer based on that prompt. You can be funny, poignant, witty, etc.; it is, after all, your story. The winner will receive $100 and publication in an upcoming issue of Writer's Digest."
There is NO ENTRY FEE. One entry per person. Writer's Digest obtains first-time rights to the winning and runner-up stories. Submit via the online submission form at the Web site (that's also where you'll find the current prompt).
The deadline for this first contest is July 10; winners will be announced in the December 2006 issue and on the Your Story winners page at WritersDigest.com.