We don't itemize personal deductions anymore...We'll just have to wait and see how this plays out.....F'king Democrats!
Well, to be perfectly honest, without having a 501(c)(3) or similar designation, the funds received are technically gross income, and go into the computation of taxable income. The reporting requirement makes it more likely that receipt of these funds will be reported in a way that makes them more auditable without having to go to PP and get record specifically related to you.
If the expenses more or less equal the income, you're not running at a net loss, and therefore should be able to legitimately claim it as a Schedule C business activity. If the net result is less than $400 of net income, there won't be any self-employment tax imposed, and that shouldn't massively increase your taxable income on your 1040. Assuming $400 of additional net income, the additional income tax liability is likely to be approximately $80 or so for the year (that assumes a net effective rate of tax for you of 20%), plus possibly some additional state income tax.
Probably the simplest solution is to keep the -thon open a little longer each year in order to include something additional to cover the increased income tax. Going for a 501(c)(3) ruling would be substantially more expensive, and would result in possibly substantially more, and more intrusive, tax compliance each year.