The £10k community sport fund will buy kit, sponsorship and new sports equipment for local clubs, as well as sporting events and training for coaches.
Grants of £250-£500 are available to small sporting organisations in south Wales.
Scott Richardson, Brace’s chief executive, said: “Our success is down to our loyal and local customers, so it’s very important to us to give something back to the local communities that support us.
“The fund isn’t just open to traditional sports groups, like football and rugby; perhaps there’s a boules club which needs a new green or a dance group requiring travel for a competition. We want to hear from all types of sports for all ages.”
Interested groups can apply for a slice of the grant by completing an application form on the bakery’s website. Applications close on 26 May.
Last month, Brace’s announced it would bring tea and toast to parents at sports matches.