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@Scilly.Suffolk
Good on you and your mates for getting something organised, but someone's offering you cheap bikes to go on a cycling holiday? Count me in!
You can't shit for someone doing something for charity these days and the rise in popularity of cycling means that sponsored bike rides are at epidemic proportions: one LBS has had to circulate "sponsorship request guidelines" to clubs and charities in the area.
"...(admittedly very local only probably) advertising" isn't going to open many doors: a guy I know, got on the front of my local rag for getting stung by a bee and having an allergic reaction, I shit you not.
Just cycling from A to B, is a bit "meh" these days: have you thought about upping your game and doing something that would garner a little more attention, thus giving potential sponsors more incentive?
In the Summer, riders from all over the world came to cycle from London to Edinburgh and back again (1,400km), in just five days! More recently, riders from all over the country assembled to cycle as far as they could in twenty-four hours (the winner nearly rode 500 miles).
In both these cases, it was at their own considerable expense.
Have you considered co-operating with a local bike re-cycling project? They could build you the bikes and after the ride they could be raffled off or at least returned to the project to sell, thereby avoiding the thorny moral dilemma of you profiting from a charitable endeavour.
Good luck!