"Does this need to be here(participation section) or on the Contact Us?" Yes, I think one page devoted to donations is appropriate and I think an additional donate button on the contact form that links to the donate page is appropriate.
"Could the Contact Form have a donate button on it?" Yep, I think it needs to be on every page with a few exceptions that will be easier to clarify when we do the visual designs.
"Does that involve a plug-in on top of the code for connecting to paypal?" Not sure. It seems like a donate button will be a simple link-button to a donate page.
"If so do we even need a donate page?" I'm not sure if you are interchanging "donate" with "donor". I think we need a donate page that is a landing page from the donate button that is on almost every page. I think we need a donor page for big fish that is a landing page from a "donors" button on every project/journey/program (whatever we end up calling it) page. I think we want donors to be worshipped on this site so they will feel like they are appreciated and they will give more and attract more donors. Again, I think we need a donate button on almost every page and it needs to link to a donate page/form.
"Is the donate page then informational as to what donations are used for?" Yes, but in addition, I think it is also the donation form.
Web's architecture
https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B172pxk7_9DtZGNjYzc3OWYtZDgzYS00NzYxLTk4ZjEtOTkwODJiNTQ5YWZm&hl=en_US
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