Just because it was paid by a non-profit has NOTHING to do with how it is treated.

For the husband, you'll need to look at the business vs hobby rules.  Without more information, it could go either way, but the 'default' would likely be a business.

For the wife, are those additional responsibilities similar to her regular job?  If so, Form 8919 and not Schedule C.  If they are completely different, then look to the business vs hobby rules.