Tip jar is so stupid. Why would anyone want that over just putting a PayPal link in their profile where it's treated as a gift not payment for services?!
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Even if you do it that way, there's still the option for people to mark it as a payment for a product/service. For many combinations of receiver and sender country, that's the only option they offer for one reason or another. Sometimes due to laws, but often just PayPal's choice.
For example, if you as an American sent money to someone in India, they force it to be marked as a payment for a service.
They make you wait multiple days and then you need to go find the payment and mark a product as being received + satisfactory. It's held more after that.
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Not being able to receive only gifts rather than also payments for products/services is pretty bad. A few people retracting payments can get your account frozen. It's potentially harmful for people in countries where gifts are not taxable income too. PayPal is awful all around.
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