"Paypal is a cancer and people deservedly distrust it" There are indeed many problems with PayPal (their handling of WikiLeaks is one problem) which is why I'm boycotting them.
It seems that it may be possible for the FSF to process the donations, based on this message: http://lists.nongnu.org/archive/html/gnu-linux-libre/2013-01/msg00008.html "It's too bad this isn't based in the USA as a 501(c)3 non profit. The forming of a software foundation is all the rage these days with control of a technology in the hands of a open community and not a corporation or single person entity." There is much involved in setting up such an organization and I'm not sure that a Trisquel Foundation is needed this time. Even if it were, joining the Software Freedom Conservancy might be a better option that spinning up our own non-profit organization. [0] http://sfconservancy.org/