We went the first week in August, and for the second year in a row, it looked like we were going to miss out on seeing Donald. On our last day in the parks, the Mayor happened upon us, and asked how we were enjoying ourselves. We mentioned missing Donald, and he took our autograph books to get Donald's autograph. He disappeared for a few minutes, and came back with the books signed.
The next day was the day we were leaving. I had scheduled a send-off breakfast at Goofy's Kitchen, because I love that place. Wouldn't you know? Donald was in the picture area right at the front of the restaurant! Of course I got pictures with him! and they turned out way better than the pictures of him that I was trying to get during the Parade of Dreams, too.
So, my recommendation, check out Goofy's Kitchen. And you don't have to be eating there, either. There is a place at the registers where they always have a character taking pictures. Find out if Donald will be there and when.
You can do Toontown Madness, too, but he's hard to catch there. We got Mickey's autograph, and when we were done, Donald was gone. And we got through the line before they opened Toontown to the whole park, too. Donald just wasn't there very long. It was a bummer.