... with people and ... (8)
I believe the answer is:
'and' is the definition.
I can't judge whether this definition defines the answer.
'with people' is the wordplay.
I cannot really understand how this works, but
'people' could be 'nation' and 'nation' is found in the answer.
The remaining letters 'do' is a valid word which might be clued in a way I don't understand.
This explanation may well be incorrect...
(Other definitions for donation that I've seen before include "presentation" , "Do anoint by way of a gift" , "present" , "Gift or contribution" , "Money given to charity" .)