He was head of research and investment policy of Grieveson Grant and Co Stockbrokers from 1982 to 1986 and head of international research and director of Kleinwort Grieveson Securities Ltd from 1986 to 1988, a branch arm of the investment bank. Following this, Donoughue was executive vice-chair of LBI from 1988 to 1991, director of Towcester Racecourse Ltd from 1992 to 1997 and was made an honorary fellow of LSE. From November 1995, shortly after the Euro sceptics had been defeated by the Major government, Donoughue, still a staunchly Labour peer was appointed to the Lords Works of Arts committee. He was not removed from this duty when a different civil dispensation came to power in 1997, until a clash with the New Labour leadership, but he was later appointed a trustee of the Victoria County History.