Hey Raven, I think you should realize one thing:
"Tournaments" always = Competition whether it involves prizes or not.
You will either enjoy (have fun) in competition or you won't (again, regardless of prizes.)
If you want fun only (no competition), then just keep an eye out on Hamachi and request games with people who you know will play you for fun.
If you still want to host a tournament, fine, but you must know that you are inviting an element of competition with it (at minimum the prize is being #1). Competition if not kept in check within one's life can make any game not "fun".