I verify that the donation has been made, either by getting a copy of the online donation receipt or by having the client give me cash (ONLY) in exchange for a money order that I've purchased and made out to the chosen charity. They then send off the money order (I usually supply a stamped and addressed envelope).
That might be problematic if the customer tries to deduct the donation, unless the money order has the name of the customer on it instead of your name.
It is in their name and I encourage them to deduct the donation 
That's the beauty of the money order for cash system---all in their name and nothing to me that ever looks like a payment. No red flags to the tax man.
I have enough yearly deductions from other sources that the ones from the cakes wouldn't impact my personal taxes, anyway.
Rae
It is in their name and I encourage them to deduct the donation
Got it, I didn't think it was possible to get a money order in someone else's name, but I've never bought a money order so what do I know. 
I have enough yearly deductions from other sources that the ones from the cakes wouldn't impact my personal taxes, anyway.
I don't believe you'd be able to deduct any costs from the cakes on your own taxes in any case, since you are operating a hobby with $0 of income your max deduction from the hobby would be $0.
Although things might get interesting if you registered yourself as a non-profit, not sure what the implications would be for income tax deductions (or if that's even possible) but you should at least be able to get a sales tax exemption.
Money orders are blank, except for the amount, when purchased. You can put anything in the info lines, really. Actually, that's why I complete them--so that the client can't make it out to something other than the agreed upon charity
If I made out the money order in my name, or did the donating myself, I could just take it off as MY charitable donation on my personal taxes. I never had any desire to do that, so I allow the recipient to claim it.
I checked out being a non-profit. OMG--the loops & hoops would kill me in a week. It's been so abused by so many for so long that the IRS has made it a nasty maze, especially for an individual like me. I've been lucky, I guess, because the charities that people have chosen are generally very familiar or easily vetted.
Rae
dsilvest...you are missing the point the woman is asking her to make a EXTRA cake so she can treat her family on the cake maker's dime.
It's like if the man in front of you at Starbucks said "I'll buy her coffee today just to be nice." and you get outyour phone and call several friends to add them to your order.
It's rude.
mommachris
And changing cake pans wouldn't get this woman what she is asking for...LOTS of leftovers.
Bottom Line - yes it's rude and yes it's greedy (and v damn cheeky) , how you react is up to you, but think about it this way - what would you do if you were charging her?
I personally think practice or no, a two tier cake is an incredibly generous thing to give to someone who is not a close friend.
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