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If you search the site you'll find a long thread on this. Some people have had problems using donations, some not.
What version of XOOPS and of Donations are you using? There are at least three floating around, the 1.4, the 1.9beta and a hack of the latter, as I remember.
My personal experience has been that I could not get Donations to work on my primary live site running XOOPS 2.0.13. However, on a test site, also 2.0.13, it did. The problem on the live site was that the IPN was not getting back to the server and so donations weren't shown or deducted from monthly goals. On the test site that worked just fine.
I recently tried it on a new test installation of XOOPS 2.2. It installed, prefs could be set up, but I had the same problem as above. Donations were not registered on the server.
I hope some programmer will take a look at Donations on 2.2. I think it is iimportant to get it working.
By the way, I suggest that you try a test donation, if you have a private Paypal account to use. You can set up a $1 donation in the module and refund yourself later on the Paypal site.
Barry
Barry Cooper
Sweet Home, Oregon