it will probably work that way (I know it works that way, I used to fund KSC's accounts using my paypal), using your own paypal account, however there might be advantages to the GC's in the following way:
1. Tax deduction (maybe)
2. The history on the account will never have any of your very personal info linked to that account(not that it would matter probably) this matters (maybe again) if one day you will release this account to someone else.
I've started funding KSC with GC's.
whichever way you do it.... well DONE! I hope the students learn and enjoy from KIVA!

Does this mean they'll not be able to register for themselves unless they create new e-mail addresses - or provide their own?
Each account does require it's own unique email the way KIVA is currently set up. This is a situation where more gmail accounts might need to be set up for the family. Thank goodness for the free email accounts!