I think I found a solution for you as I found this thread looking for a solution.
If you go to /public_html/wp-content/plugins/donate-plus and edit donate-plus.php. Look around line 450 and you will find the following code:
$output .= '
<input type="hidden" name="notify_url" value="'.$notify.'">
<input type="hidden" name="item_name" value="'.$dplus['donate_desc'].'">
<input type="hidden" name="business" value="'.$dplus['paypal_email'].'">
<input type="hidden" name="lc" value="US">
<input type="hidden" name="no_note" value="1">
<input type="hidden" name="no_shipping" value="1">
<input type="hidden" name="rm" value="1">
<input type="hidden" name="return" value="'.$tyurl.'">
<input type="hidden" name="currency_code" value="'.$dplus['paypal_currency'].'">
<input type="hidden" name="bn" value="PP-DonationsBF:btn_donateCC_LG.gif:NonHosted">
<p class="submit"><input type="image" src="'.$button.'" border="0" name="submit" alt="">
<img alt="" border="0" src="https://www.paypal.com/en_US/i/scr/pixel.gif" width="1" height="1"></p>
</form>';
If you look at this in Firebug you will see that a <br>
tag is automatically being placed after each hidden input. I found that if I either remove the hard breaks in the code, or place a space between each line, like:
$output .= '
<input type="hidden" name="notify_url" value="'.$notify.'">
<input type="hidden" name="item_name" value="'.$dplus['donate_desc'].'">
<input type="hidden" name="business" value="'.$dplus['paypal_email'].'">
<input type="hidden" name="lc" value="US">
<input type="hidden" name="no_note" value="1">
<input type="hidden" name="no_shipping" value="1">
<input type="hidden" name="rm" value="1">
<input type="hidden" name="return" value="'.$tyurl.'">
<input type="hidden" name="currency_code" value="'.$dplus['paypal_currency'].'">
<input type="hidden" name="bn" value="PP-DonationsBF:btn_donateCC_LG.gif:NonHosted">
<p class="submit"><input type="image" src="'.$button.'" border="0" name="submit" alt="">
<img alt="" border="0" src="https://www.paypal.com/en_US/i/scr/pixel.gif" width="1" height="1"></p>
</form>';
that the hidden fields are no longer visible as breaks and it fixes this issue of the space.