Just to play devil’s advocate, (and I’m not a hardliner on this) just as I said that it’s not clear this IS a recreational flight, it may also not be clear that it’s NOT recreational a part 107 flight either. Because the FAA and Congress kind of copped out on defining recreational use. Which means the law still may not be clear and there may be room for interpretation. We need look no further than the FAA’s Special Rules for Model Aircraft which says:
The statute requires model aircraft to be flown strictly for hobby or recreational purposes. Because the statute and its legislative history do not elaborate on the intended meaning of “hobby or recreational purposes,” we look to their ordinary meaning and also the FAA’s previous interpretations to understand the direction provided by Congress.3 A definition of “hobby” is a “pursuit outside one's regular occupation engaged in especially for relaxation.” Merriam-Webster Dictionary, available at
www.merriam-webster.com (last accessed June 9, 2014). A definition of recreation is “refreshment of strength and spirits after work; a means of refreshment or diversion.”
Based on this, one could argue that the OP gets a charge out of doing this for someone who happens to be his boss and that is enjoyment and relaxation for him. Who’s to say?
It goes on to say:
These uses are consistent with the FAA’s 2007 policy on model aircraft in which the Agency stated model aircraft operating guidelines did not apply to “persons or companies for business purposes.” See 72 FR at 6690.4
Any operation not conducted strictly for hobby or recreation purposes could not be operated under the special rule for model aircraft. Clearly, commercial operations would not be hobby or recreation flights.5 Likewise, flights that are in furtherance of a business, or incidental to a person’s business, would not be a hobby or recreation flight. Flights conducted incidental to, and within the scope of, a business where no common carriage is involved, generally may operate under FAA’s general operating rules of part 91. See Legal Interpretation to Scott C. Burgess, from Rebecca B. MacPherson, Assistant Chief Counsel for Regulations (Nov. 25, 2008). Although they are not commercial operations conducted for compensation or hire, such operations do not qualify as a hobby or recreation flight because of the nexus between the operator’s business and the operation of the aircraft.
Based on this, the OP flight would not be commercial. The possible catch here might be the “nexus between the operator’s business and the operation of the aircraft” because he’s doing it for his boss. I admit that’s a thin reed though. Yet I also admit it may open the door to interpretation.
There are hardliners that say as long as your doing it for someone else, it can’t be recreation. I don’t personally subscribe to that restrictive a view. I do get a charge out of doing an aerial for a friend of their house for personal consumption and making them happy. That’s enjoyment for me. And, no, I don’t think them giving me a beer afterwards makes it “for compensation.”

. But if someone does complain about, say, the funeral flight (as you point out) then the potential grey area in what defines recreation and enjoyment comes into play. And who has the burden of proof?
Having said all that, I agree with you that I doubt the FAA really wants nitpick at these interpretations and run for the gap. But the OP seemed to want a clear assurance that he would or not be complying with the law. And I still think it’s not clear this is a 107 flight. Just as it could be challenged as a hobby flight should something go wrong. And I have to say this was a flight with above average risks for reasons stated above by myself and others.