Hmmm, well I can't say it's a perfect sponge filter, but it works under much of the same principles, and is scalable to your application:
Get a tupperware container for the size of filter you wish to use. For extremely large filters, you can even use a 5gal pail. Drill lots of small holes in the bottom and sides of the container, and then fill it with cotton, filter-floss, air-filter floss, or some other medium you can get cost-effectively for your application size. In the lid, place a hole large enough to stick a powerhead inlet. For larger applications, a larger hole to fit your pump's inlet may be needed. Put the top on, slap on your powerhead/pump into the hole, and turn her on.
A little graphic that kinda resembles what I'm talking about: