I write free software. My free software has a "donate" link that goes to the PayPal donation page. The idiots at PayPal froze my account since I couldn't prove 501(c) exemption (which I don't have - and more to the point, never claimed to!) and insist that it's "illegal" to receive donations unless you're a registered non-profit with 501(c) IRS clearance. All this happened when I changed the name of the account from my name to the name of my website (because I didn't want my name on the payment page), bringing to their attention my site and PayPal account.
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