LTC8K6 said:
Yes Navigator, there are no psychic, supernatural, or paranormal powers, therefore the $1,000,000 will remain safely tucked away gaining interest.
You sure picked the long way to tell us that. 
If it's not so easy to do any of these things, why do so many folks say that they can?
Greetings everyone
"Why do SO MANY folks tell people they can?"
...Talk to the dead
...Dowse for hidden articles
...Shift matter with their focused thoughts
...tell the future acturately
...etc etc...
THAT is the question!
Why do people make such claims?
Well, it's a way of making money, but so is plumbing and carperntry and engineering.
In the case of this being the motivation, there are plenty of people who will pay others to read the Tarot (for past present and future information) which confirms their own subjective points of view. They are happy to pay.
Thus there is a need.
You need shelter, you pay someone to provide it.
So both parties are motivated by NEED.
In one way, if such needs are met, then for these folk, science has not been able to fill this need.
So science might like to look at WHY there is this need.
But from what I gather, this is not James' motivation for offering such a handsom prize - and I agree that if someone could actually come up and satisfy the JREF organisation, it would indeed change dramatically, the way Humanity sees the world, maybe even for the better.
James' motivation seems centred upon exposing fruadulant shysters - and he has his work cut out in that department - from taking advantage of the gullible.
However, I would suggest that those 'gullible' do not, consider themselves at all to be taken advantage of by the unscrupulous...something fulfils the need, and that is all that matters.
Maybe that is what makes the world interesting?
Maybe it is like Children and Santa Clause. Imagine James taking this a step further and embracing all the myths of mankind - exposing to the children of the world that their is no Scientific evidence for Santa, so Santa is another fraud and those institutions which thrive off the beliefs of children, and even go so far as to instill those beliefs in children at the very beginning of their conscious development, are nothing more or less than liars!
Gosh!
James lives in a world where belief in myth and legend is the predominant motivation for folk even bothering to get up in the morning.
No amount of prize money will change that fact.
Scientific investigation MIGHT...but I suspect that those who use devices of divination see some kinda evidence which supports their belief systems, and any science which seeks to undermine those beliefs, had better have something in which to replace Santa with, or Science will lose the battle.
Facts don't seem to be enough. It is like telling the Child "There is no Santa - you have been lied to.
Bubble Pops '*'
But what is left over? A bitter thing. So the truth creates a bitter thing, where the lies did not.
Then what apart from fact, has science contributed? And how has this fact helped?
Each day that goes by where the money is not claimed, is another day in which Science strengthens it's hold upon reality.
No money in all the world will change the fact that myth and fantasy are part of what makes humans humans, and for many of these, I suspect, their personal beliefs are far too helpful a thing for them to sacrifice on the alter of scientific truth.