I've seen on numerous profiles.. "xxxxx donated 300 FG to me! Thanks!"
How does someone donate? And what exactly does it do?

that just means someone gave them free fg and they made a list to recognize their generosity. Usually its friends giving free fg to friends, you arn't aloud to ask for donations. Giving a donation is the same as giving fg, you just don't get anything in return.

Memebers can choose to donate to other members for any number of reasons

They feel like elping someine, they help them in some way as a thank you

All donating it that ways means is that perticular member gave that person xxxFG

Thanks a lot guys, that was the general idea I had I just wanted to make sure.