I recently set up a Paypal business account for receiving donations. The account has no real info and only exists so that donors don't see my real name when they send payments from my site.

Today the account reached over a hundred so I decided to send these funds to my real account. I selected payment option 'gift' to avoid problems. However, Paypal immediately limited my business account and placed a 'temporary hold' on the payment! Now it's stuck!

Anyone know the best course of action to take next?

They sent me an email saying:

We need more information about this transaction. Please log in to your PayPal account, click the "Resolution Centre" tab, and provide more information by 22/11/2011.

If you need to provide information by fax, click and print a cover sheet: <URL>

Please fax proof of postage or proof of refund to <number>.

We recommend that you do not post the item until our investigation is
complete. If you've already posted the item, please log in and let us know where you posted it.

We have placed a temporary hold on the funds until we complete our
investigation.

Currently when I go to my real account it gives me this form to fill out in the resolution centre:

Where did the buyer ask you to send the item?
Name/Address

What best describes your transaction?
None of the Above
Service
Non-Physical Goods
Buyer picked Up Goods

Please provide additional details about this transaction. For example, any email correspondence you had with the buyer.

Any idea what answers I should put? Should i just say it was a gift? Or would it be better to say service? Or would it be better to just get a postage receipt for something/anything to "prove" I sent something???

Please help!

I think you are in trouble mate.
Its very hard nowadays to deal with paypal.
Just try to tell them that it was a donation?

Honestly, I think you are okay. All that you need to do is provide some justification as to why people are giving you donations.

Have you ever considered contacting some of the individuals, with your business email address of course, and asking them for a statement which briefly explains what the transaction was for, and that it is a legitimate purpose? I think this would go a really long way.

Sending money to your real info account from a new account with fake info from the same IP is not good. You're lucky they didn't limit both of the accounts and consider it lucky you only have 100 bucks tied up.