The recipient would set up a paypal account linked to an email address. On Paypal's site they have the HTML code to embed in the web page and that will put the button on the page. Then all folks have to do is click on the button and the paypal screens will do the rest. The money then will transfer into the recipients paypal account where it can be transfered to another account or left there until needed. A lot of folks besides the auctions are using it these days, its an easy way to send money.How does the paypal donation button work?