"it was no help as they do not address Exempt Organizations."

Those references do, however, provide comparative info for how it would be treated. Example:

"Forgiven PPP loans and EIDL grants are considered "Other Tax Exempt Income" for federal purposes"

I don't know if your client entity follows FASB or GAAP or? Filing 990 or 990EZ?

There are lots of references on the web, including tracking the income associated with each period in which you tracked the related expense, if that applies (crosses year ends).

Examples:

https://www.aicpa.org/content/dam/aicpa/interestareas/frc/downloadabledocuments/tqa-sections/tqa-sec...

https://www.untracht.com/news-insights/vantagepoint-newsletter/accounting-for-ppp-loan-forgiveness/

https://claytonmckervey.com/accounting-for-ppp-loan-forgiveness/

https://www.pncpa.com/insights/accounting-for-ppp-loans-forgiveness/

https://www.njcpa.org/article/2021/01/05/3-approaches-for-reporting-ppp-forgiveness-on-financial-sta...

Since there is no Business Code for these funds, I like "Government grants equivalent to contributions" which makes it similar to specific agency grants (SBA administered). That's line 1c.