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501c3 Clarity on "Donations"

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501c3 Clarity on "Donations"

I have a 501c3 that is participating in the SCRIP Gift Card Program. How it works is that someone gives the 501c3 $100 for a $100 Walmart Gift Card. The 501c3 goes to SCRIP, buys the $100 gift card for $99 and is allowed to keep the $1 saved for their fundraising campaign. They give the $100 gift card to the buyer. 

 

So I'm building a website for them to handle this type of transaction but I'm unsure if I need to set the Paypal account up as a donation or as a business. As a business, it probably wouldn't be worth it because the fees eat any profit there would be. 

 

What is the proper way to accept this type of giving?