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jwolthuis - 3:26 pm on Oct 18, 2012 (gmt 0)
I have a little experience with donations (with our church). Accepting donations on PayPal requires pre-approval, and you must be a charity or non-profit 501(c)3.
Assuming that you meet the requirements and have been pre-approved by PayPal, how long have you been at this? The advice you receive will be different if you've collected thousands of donations over 10 years with no chargebacks. Versus a new account with less than a dozen transactions.
Need more information to give you advice on how to resolve this.