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The Open Web Application Security Project (OWASP) is having their 2008 Summer of Code project. The focus of this project is to support the development of various OWASP projects. If you're interested in helping out check out the OWASP Summer of Code page.

From the OWASP Summer of Code Page:

• OWASP is now launching the Summer of Code 2008 (SoC 2008), following the previous OWASP Spring of Code 2007 (SpoC 07), in which 21 projects were sponsored with a budget of US$117,500, and the OWASP Autumn of Code 2006 (AoC 06), in which 9 projects were sponsored with a budget of US$20,000.
• The SoC 2008 is an open sponsorship program were participants/developers are paid to work on OWASP (and web security) related projects.
• The SoC 2008 is also an opportunity for external individual or company sponsors to challenge the participants/developers to work in areas in which they are willing to invest additional funding.
• The Open Web Application Security Project (OWASP) is a worldwide free and open community focused on improving the security of application software. Our mission is to make application security "visible," so that people and organizations can make informed decisions about application security risks.