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Below is a short conversation I had with PayPal. In principle everything is ok, as long as we follow the general rules described in the mail.
Not for Profit Compliance QID532 (KMM40262141V56374L0KM) :kf1 Dear David H., I apologize for the length of time that has passed between your email and the sending of this reply. Should you wish to accept donations through PayPal, you will have to make clear the nature of your organization, the use to which the money will be put, and whether or not the donations are tax deductible. It would also be best that you have a bank account owned by the organization and not an individual attached to the account. It looks as though your group would not qualify as a charity, however, as long as you heed the above, there should be no problem for you to accept donations on PayPal. We appreciate your patience and understanding regarding this matter, and wish you continued success on PayPal. Sincerely, Jim R. PayPal Compliance Department PayPal, an eBay Company