Tattered rag found in smaller donations (7)
I believe the answer is:
largess
'tattered rag found in smaller donations' is the definition.
I can't tell whether this defines the answer.
'tattered rag found in smaller' is the wordplay.
'tattered' indicates an anagram (a tattered or broken form of the letters).
'found in' indicates putting letters inside.
'smaller' becomes 'less' (less great in size).
'rag' is an anagram of 'arg'.
'arg' placed within 'less' is 'LARGESS'.
Can you help me to learn more?
(Other definitions for largess that I've seen before include "Bounty" , "Generosity" .)