The only comment I'd like to add is that setting up a 'donations' website should only be done by those who are asking for donations for a genuine cause. It is a concept that seems to have been hijacked at various times by scammers and as such there can be problems from time to time with paypal.

A quick search on google will bring up all sorts of 'hard-done-by' tales, some from genuine charitable causes and some from others who are quite plainly bandits. Nonetheless, the outcome is frequently the same; paypal will freeze your collections.

My advice in this area is to speak to paypal in advance. Send them a written explanation of what you are proposing and ask for written feedback from paypal as to their view on it. Otherwise, a genuinely good cause can find itself up to its neck in quicksand. It hasn't happened to me because I don't ask for donations, but take care before following this route.
Brian