Bruce, here's what I sent them. Perhaps others might also send PayPal a supporting note? It's not hard.
"Recently a colleague was prevented from collecting raffle payments for a charity he is running. I'm writing to ask PayPal to reconsider this policy. The raffle in question is the sale of a custom knife made by Mastersmith Bruce Bump. The knife raffle supports the purchase of playground equipment for an orphanage in Jamaica. You may find information about this generous undertaking at
http://knifedogs.com/showthread.php?t=1683
and follow the creation of the knife at
http://knifedogs.com/showthread.php?t=1911.
I understand that raffles may represent an opportunity for fraud. However, I believe it is possible to determine the legitimacy of any raffle in a simple and efficient manner, possibly by establishing pre-approval through PayPal.
In the current example, donations to the children's playground came to an abrupt halt when PayPal threatened Mr Bump's account. This is truly sad, particularly when this raffle could so easily have been verified. In the end, the charity will likely not have achieved even half of its potential simply because people are far more likely to send money if it's simple (PayPal) than if they have to go through the effort to prepare and mail a check or money order. Also, and probably equally important, people's PayPal balances may reflect a more discretionary form of money than their daily checking account balance.
Please reconsider this policy. PayPal could achieve great community recognition if, rather than preventing charity raffles, it enabled them and perhaps offered matching donations of some kind. Thank you for your consideration."
I'm not suggesting that this would have any effect on them, but I can hope that it might.
Thanks Bruce, for your kindness and wonderful example to us all.