We just had a a similar activity last Saturday with our ward and had a blast!  Here are some ideas for you to do with your ward:

- Invitation Ideas: Make up invitations and tape Alka seltzer's to them or use clipart instead.  Make sure to invite everyone to dress Western style.

- Table Centerpiece Ideas

I tried to find some cheap cowboy hats (from the dollar store) but couldn't find any so I went with a wicker basket and lined them with bandanas.  Then we filled the hats with Fritos.  We had some with just chips and small bowls with salsa.  Different ward members signed up to decorate each table and some of the things they came up with were really creative.  For example, one person decorated the table with her husbands cowboy boots and had artificial sunflowers coming out the top.  Some had little cactus' from Wal-Mart, dice and some had play money here and there.  You could get a small metal can and fill it with peanuts and put a bowl next to it for them to put their shells in.

- Decorations

My sister-in-law (also part of the Activities Committee) made some wanted posters of the bishopric and activities committee.  They turned out darling!!  [Click here for a copy of the wanted poster].  Just take my husband's picture out and insert who ever you want.  Make sure to come up with crazy names to match.  Just print them on your printer in black and white on tan or light grey paper/cardstock.  For added effect, you could burn or singe the edges.  We taped copies on the buffet table here and there, in between the food.  You could post them on the walls and doors too.  [This is a picture of me and my husband (frantically?) getting everything set up].

- Photo Op

It just wouldn't be the same without taking a few pictures.  I initially had planned to make a fun backdrop, but time didn't permit it.  Instead I used some props to make it fun.  Things we used: toy pony, handcuffs, cap gun and a variety of cowboy hats (just in case someone "forgot" to dress up).  Some other fun props might be: rope, saddle (if possible), or even two folding chairs decorated like a horse.  We plan on developing the pictures and giving a copy to each family.  Double check to make sure no one is forgotten.  Some will hide from you, but at least give them the opportunity.  Here are some pictures of our fun:

         
                                      
- Award Ideas

Serve up the chili in little taster cups so everyone can sample multiple chili's.  I used a fun idea from Fran Curtis on a Yahoo Group.  She gave the idea to give each chili a number.  Everyone in attendance could try as many chili's as they wanted.  After 30 minutes, she opened up the voting booths for voting.  Everyone 8 years and over got to vote. They got a "Thank you" stamp on their hand after voting.   

Then tally up the votes and award the prizes.  I was thinking of having a ladle with the cup part of the ladle filled with Tums or Rolaids.  However, two generous people have let me share with you what they did for awards. 

The first person Becca Stephenson says:

We gave out certificates to everyone along with a candy bar. We had 28 entries and had to come up with that many unique awards. Here's some that I can remember.

1) Manly chili
2) best use of meat
3) No beans about it
4) best fragrance
5) kid favorite
6) chunkiest
7) most unique
8) What's that secret ingredient
9) fire alarm
10) needs the "Beano" chili
11) Family Favorite
12) Sweetest
13) Best use of a can opener chili
14) Fire cracker
15) Best Traditional
16) Navajo
17) Thickest
18) Screwball
19) Best over-all
20) Puts hair on your chest

Debbie from Michigan says:

Our prizes are aprons. I used my Print Artist 5 to find a fat, chunky hot chili that I printed onto transfer paper along with the words, "2006 Chili Cook-off".  I ironed them onto the bib part of the 3 aprons. Then in the bottom right corner of each apron, I did a chili pepper, but smaller, with the words "1st Place" or "2nd Place or "3rd Place" on transfer paper and ironed them on.  Remember to do your wording in mirror image if your using transfer paper.  We've got judges who will be given 3 garbanzo beans to use in making their favorite picks by placing a garbanzo bean in the cup that's in front of each pot of chili. The cup with the most is 1st place and so on down to 3rd place.

- One more thing:

Mormonchic has a fun award idea, Chili Bowl Trophy, as well as some fun chili recipes.