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PayPal charges less for transactions that involves donations to nonprofit charities and the like. They have to be able to prove that status in their own country. Tax exemption and so on.
I believe it would be impossible for Kovid to demonstrate this. That's why he's no longer allowed to accept "donations" via PayPal. But he can accept "support", meaning that PayPal can take a slightly larger cut of the transactions.
In effect, by making restrictions for donations, PayPal increase their profit. Nothing wrong with that. Profit is nice. If we don't like it, we can decide not to use PayPal. Unfortunately there is no good alternative.
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