If highwon is the owner of the server why does he have only VIP, why doesn't he just give himself elite?
Because he doesn't need to give himself elite. If you were owner you'd give yourself elite based solely on this question but that don't mean he has to do it to himself.
So he buys his ranks with the money he receives with the donations from those that buy ranks on here to start with? (He is just donating to himself, whats the point, he is actually just losing money with the paypal fee)
he doesnt take money from donations? all money received through donations go straight to the server and not his own pocket, meaning that his donations to the server would come straight from his pocket
He pays for the server himself doesn't he, when a donation goes "to the server", its just a backfeed of donations to pay for the servers. If SeriousGMOD ever miraculously shutdown, then the donations that would go towards the server would go into his pocket wouldn't they? Or would he refund their purchase months later since the money wouldn't go towards the server anymore.
This goes beyond the scope of the original question. He would likely just keep the server up until the donation money is exhausted and then shut it down. At least, that would be my guess.