I've had some problems with damp off, and have found a few "solutions" online.
First, if top watering, avoid watering around the stem of the plant- water around the edges of the cup or pot.
Second, you can mix a tablespoon of 3% h202 to a gallon of water, and this is supposed to prevent the mold from taking hold.
Third, anti-fungal agents in the soil should prevent damp-off. I know some of the Promix mixes have them, probably some seed starter mixes too (but you'd have to check.)
On a similar thought, and I'm not sure if this would work, but colonizing your soil with beneficial microbes may assist in preventing damp off as well.
Goodluck, I always have problems when it gets hot and I decide the plants need a nice big drink of cool water. By the time the cups the seedling are in heat up, I've lost a few to the dreaded damp off.