You don't end up in jail by any mean even if you withdraw the money every time and you have refunds pending with no money in the account. I know people that owns PayPal money and they're trying to reach them via 3rd party for years. Do not even worry about it.
If you open a server and your account needs to be verified or they limit your account for the first time - that is the time when you need to call them and explain them that it's a game founded by donations; they'll lift most of the limits/restrictions.
It's very important to have the business account.
When you respond to a refund ticket, try to be politically right:
"Thank you for your interested and support in donating for our project As per our terms and conditions that you agreed, donations are non-refundable. You were already rewarded in-game for your kind donations with Donate Coins, which has been already used."