I think it would be helpful to have two options when setting up a class:

Option 1 – Materials included in the class fee

The total registration fee includes both the instruction and materials. The material reimbursement would be considered part of the instructor’s taxable income and would also be included in the calculation of the instructor/Community Ed split.

Option 2 – Materials listed as a separate fee

The class fee covers instruction only; a separate materials fee is added to the participant’s total cost. The material fee would then be reimbursed to the instructor on a one-for-one basis and would not be included in the instructor/Community Ed revenue split.

This would allow the total amount paid by the participant to remain clear, while keeping material costs separate from the revenue used to calculate the instructor and Community Ed portions.

I think this would give programs more flexibility and make the financial breakdown much cleaner, especially for classes with significant material costs.