Mr. Donahue graduated from the U.S. Military Academy at West Point in 1946 and was commissioned into the Army Air Corps — later the Air Force — where he piloted single-engine planes. His interest in the stock market and finance led him to sell mutual funds on commission after leaving the Air Force in 1950. Five years later, he co-founded Federated Investors in 1955 with two high school friends, Richard B. Fisher and the late Thomas J. Donnelly as outside counsel. In the 1960s, they raised $100 million in assets in tax-free exchange funds at Federated. The company now has $361.7 billion in assets under management. Mr. Donahue spearheaded an effort among his family members to endow the Donahue Family Chair in Investment Management in Duquesne University's John H. Donohue Graduate School of Business. He was involved in several charitable efforts, including creating the Golden Apple Awards for the best teachers in Pittsburgh's Catholic schools and founding the Extra Mile Education Foundation to provide Catholic education for inner-city children. Mr. Donahue is survived by his wife of 70 years, Rhodora Jacob Donahue, and their 13 children, 84 grandchildren, 109 great-grandchildren, as well as his sisters, Katherine Kirby and Margaretta Garman.