"I know for individuals it would not be but I am not sure about the business."

That's not correct.

For a business, even if a charity, it is income. For a business that is not a Not-for-profit, it is business income the same as usual. Grants from governmental entities (or passed through from them) that are earmarked for specific needs per some sort of legislation would be not taxable. Example: a county Health Department is given State funds from a Federal program, and they provided it to care providers for offsetting unexpected sanitation needs due to covid.

A business can give money to anyone. That doesn't make it a business expense for them, and that doesn't make it a donation to anyone, and that doesn't bypass how it is treated per the tax code. Using the word "donation" doesn't change reality.

Individuals that get money would have reportable income unless it falls in the gift rules. "Donors" cannot give money to individuals and call that donation as write off. It is donation, in other words, as terminology. Not as tax regulation construct.

Without more details, it seems likely this is reported as regular business income. It wouldn't be sales, and it would bypass sales taxes, though.