Violation for holding a charity fundraising day

We are a small voluntary greyhound rehoming charity and use the paypal account to receive donations via our website. An disgruntled ex member has reported us for a violation of the acceptable use policy, out of spite.

I have been trying to resolve this with paypal today but each time I email them, I get the same response back - remove the relevant posts & the paypal donate button or lose the paypal account.

There are alleged 2 violations:

1. Is for a raffle we were holding online to raise money for our homeless dogs. I accept that this is a raffle but they are all donated prizes and most other charities use this method of payment for small raffles, lottery bonus ball fundraisers etc. I accept that although this is not gambling it could be seen as a violation so I have removed the word pay and changed it to donate but they still want the raffle thread removed altogether.

Why is it just our charity that they are imposing this violation on when it is standard practice to use paypal to collect money through fundraising.

2. This one I totally disagree with. The charity is having a fundraising day for people and hounds and charging £10 per person for lunch. This also violates the acceptable user policy and I have no idea why. Paypal wont reason with us and unless we remove the fundraiser from the website the will close the account.

I have asked why they think there is a violation but they just will not answer the question.
This seems totally unfair as there is no violation yet to remove the thread will cost the charity a lot of money in lost donations. My other worry is that if they can make us remove this one for no reason and without a violation, then can work their way through all of our events.

The same paypal account has paid for raffle tickets on other charity forums and there has been no comeback and they have not violated the use policy.

Is there anything else we can do. Or has anyone had any experience of this type of violation and any suggestions what we can do about it. We know who reported us & why but paypal just wont listen.

The charity stands to lose around £600 because paypal will not respond.