Reasoning? Fees. Glorious bountiful fees.
|"Donation"||$25||$1.28||$25||$23.72||Receiver is forced to pay hem|
|"Gift"||$25||$0.25||$25.25||$25||Sender has the option to pay the fee themselves|
Apparently at some point Paypal got this bright idea that a gift is different from a donation, and they don't mean the same thing at all. So seriously, don't send me any donations.
If you want to give someone money for something, log into paypal, and send them money directly and mark it as gift, even if you still don't want to pay the fee, at least you know they're getting the money and not Paypal soaking it up.
I've gone even a step further, clicking my "donation" link will take you directly to the send money page with my email already inputted. Put that in your fee and shove it.