What kind of word is this?

According to the BBC ...

"Former cabinet minister Peter Hain will not face charges for the late declaration of £103,000 of donations to his Labour deputy leadership bid."

I do not really know anything about this,so will not comment on the case [but why is he always that alarming orange colour? is he related to David Dickinson the Antique Guy?]

What disturbed me was the report on the radio about the donations, and Mr Hain being called "The Donee". I am happy with a 'donation' given by a 'donor' - but I really think that the recipient should not be called a 'donee'  It is a very ugly word. Sadly it is listed in my COD.

Somehow it feels as if it should be connected etymologically to my one of my favourite yellow coloured people and his donut!

Being a pedant, I only spell donut thus when connected to Dunkin' or Homer.

Otherwise I insist on the strictly British doughnut