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But anyone can send you a gift from anywhere and from my experience it does not violate the TOS as i would never do that.

I have no problem with using paypal, you have to know how to do it.

First you accept it as a gift, not a donation, not a subscription, not a recurring value, not a sale.

Think of it this way, if someone wants to use their email address at paypal to send my email at paypal 10 bucks, paypal cannot tell me which website to give that gifter some time on, it is a legal transaction from person to person as a gift. FYI, gifted money (unless you use the one time exemption) is technically taxable: i.e. Grandma gives you $10,000 one time gift to avoid taxes.

Further more, how does one expect Paypal (and others) to differentiate what is a gift and what is not?

You can also send them an email at [email protected](I think) and ask them to review your website for consideration.