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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.
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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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