A closer look suggests that the dispute may be over claiming to be a charity rather than use of a specific feature.

It would be really nice if PayPal would offer a "payer sets amount" button labeled something other than "donate" and/or made it possible to change text on the standard buttons. Something like a "contribute" button would be great for many crowdfunding projects, for example.

For those of you worried that PayPal may cut you off -- and yes, that includes me, I'm screwed if they decide to be unreasonable -- there is a list of money handling services on my Crowdfunding Economics page:
http://penultimateproductions.weebly.com/economics.html