Not sure what you mean (or think you mean by "personal income" instead of "business income." If your spouse received a 1099NEC for her work then she is an independent contractor. The fact that the work was done for a non-profit is irrelevant.
If she worked as an independent contractor, and did not receive a W-2 from which Social Security, Medicare and federal and state tax were withheld, then she has self-employment income. She has to pay self-employment tax on that income for SS and Medicare, as well as ordinary tax to the federal and state governments.
https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...
https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922
https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax
https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c
https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct
https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
