On 4 April 2006, Donaldson was found shot dead inside a cottage where he had been living for several months, and which was owned by a relative. Chief Superintendent Terry McGinn of the Garda Síochána said they had been aware of his presence since January and they had warned him of a threat to his life. However, he did not ask for special protection. The cottage was located in the townland of Classey, 8 km (5 miles) from the village of Glenties on the road to Doochary. The last person with whom he is believed to have spoken was Tim Cranley, a census taker, who spoke to him in the cottage around 8:30 pm on the previous day. His body was found by Gardaí after a passer-by reported seeing a broken window and a smashed-in door.