Donations and User Icon Idenifier

We have no income for our forum at the moment, so will shortly be giving our users the opportunity of making a donation. A number of our regular visitors have suggested we do this and have offered to contribute.

So, the best way to go about doing it?

I'm guessing PayPal would be the best way to make payments as I think most people have PayPal accounts?

When people make a payment, what then? Is it then a case of manually upgrading their usergroup so people can easily identify people who have donated?

What's the best way identify people who have donated?

I'm really looking for advice on the whole structure/process to be honest, so if you have any experience or ideas, I'd be grateful to hear from you.
 
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The forum (without use of any mods) is set up with the "User Upgrades" feature where users can donate through PayPal or Stripe and have a user group applied to their account as an automated user promotion. You can get this group a special title (on mine it's "Site Supporter") and set special permissions for the group members (maybe they have their own private forum, or they can edit posts for a longer period of time or other expanded features.

See: https://xenforo.com/docs/xf2/user-upgrades/
 
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