Donations will keep Elfpack running and pay for its Internet connection, but unlike Elftown, Elfpack is not a non-profit site, so extra money will be used for just cases like more wine to [Hedda] or plane tickets to [Sunrose].
It's generally easy to donate with Paypal even if you have never used Paypal before. There are also some help on How To Donate with PayPal.
Extra: If you have donated $24 USD or more, you'll get rid of the limit of images you can have in your description.
Donations don't protect you from being banned! I might give donors an extra chance, but people who are here to destroy, aren't welcome regardless if they donate or not.
If you're a donor (a least $12 USD!), you can use these extra tags in your description in your house:
<red> Makes the text between the start and end tag <green> this colour. As with other tags, you have to <blue> have them in pairs, otherwise all of them stop <white> working. <purple> <yellow> <LBLUE> <DBLUE> <LPURPLE> <DPURPLE> <LGREEN> <DGREEN> <PINK> <DGREY> <ORANGE> <BROWN>
You also get some sort of frame around your description. I hope it will be nicer looking in the future ;-)
You will also be invited to the donor-forum, where there might be a bonus now and then...