paypal are getting wise to all this 'gift' malarky, and charging certain people that make a certain amout of gift payment (bit like that ebay 'circumvention of fees thing')
I like to mix it up in the personal section of payments, with personal payment owed, household expense etc.
And it's also a good idea to not divulge too much info in the messages you send.
I never divulge info in messages but I do always use gift. Maybe I've crossed a threshold. Either way I'm done with Paypal! Bank transfer from now on...