I will follow up with PayPal. this is what they sent so far:
I checked your PayPal account and it is definitely set up to accept donations on your website for guest transactions or non-PayPal account holders.
I also visited your website: http://www.wolflaurelforhospice.org and noticed that the ‘Add to Cart’ button you were using after clicking on “Enter different amount here” is a third party button. This is the reason why your donors are being asked to sign up for a PayPal account or log in to their PayPal account since they do not coincide with the one set up on your PayPal account.
There is a feature that your website developer needs to edit on the third-party ‘Add to Cart’ button for it to be updated with your PayPal account settings.
If you were using a PayPal ‘Donate’ button, you no longer need to worry since it will be automatically applied on your website and your donors will no longer ask to log in or create a PayPal account to send their donations.