There is something really screwy going on at paypal lately.
Recently, someone I know clicked the donate button on my website and donated $25 to me. Paypal immediately flagged it (less than 60 seconds after he made the donation) and asked me to provide info as to where I had shipped the goods he had purchased.
When I explained that this was not a buyer/seller transaction and that it was a donation made through a paypal donate button on my site, and that there were no goods involved, so nothing to be shipped, that the software is there on my site and a user can download it free of charge, use it as much as they want, and donate if they feel like supporting its development...and then the donor himself called paypal and gave them hell about the whole thing for not letting me have the money he donated to me, the end result was that paypal never listened to what either of us had to say, refunded the money to the donor, and punished me with an additional fee for the whole mistake, telling me in the future not to sell goods to people without obtaining a shipping address. I have not been able to get this issue resolved and they continue to occasionally record transactions made through my donate button as purchases for goods that need to be shipped, rather than as donations.