Do you place ads instead of asking/placing a button for donations? Dont like ads, so you ask for donations? Which is better? Which is more professional? Which method do you use?
Personally I prefer ads rather than donations for income to cover hosting / domains / prizes. A small site will make more on donations, a bigger site will make more on ads, simply how it works.
That being said, I see paid membership services working well too. Don't think they should be forced of course, rather allow you access to more content. For example, if you donate $20 yearly you may get a special rank called "VIP" and access to the VIP room where you hear news first, see things other's don't, ect.
I use ads (very few), though donations might be asked for at some point in the future.
For my next project, I'll have subscriptions for about $3 a month that removes ads for members that purchase it, as well as a few other added benefits that are still in the works.
Not sure if I'll be asking for donations at all, unless they're offered to me. I may just come up with a few subscription plans that are worth buying. I like to give extra stuff if people are giving me their money (besides the resources and hosting that I'm paying for out of pocket).
I would say it like this...
If i had a small site/business running, i would be using ads. Whether it's image ads, text-based ads or other - i think it's the solution. Donations would be difficult to get, in my mind.
If you have a bigger/big site/business running, then donations is the go to choice. I don't like being forced to pay.
I'd argue the opposite. You need quite a significant amount of traffic for ads to generate any money, and most regular members that have money to spare will end up donating at some point.
My forum has maintained consistent activity for more than 5 years, and ads have only generated a total of $60, while donations have amounted to $2,445.
Small Site - Neither. Your goal is to take your site to the next level not squeeze out as much money as you can because you can't afford the upkeep. Websites in 2017 are fairly cheap to manage so you have no real excuse for asking for donations nor any excuse for displaying ads.
People hate ads. But people really hate when the owner of a website is constantly asking people to donate. Especially, non-active ones.
Instead, focus on growing the community/site. IMO, people are more willing to come back if they aren't pressured to pay the hosting bill.
Medium Size Site - Both. At this point, you have a steady community or a steady website. People go onto the site daily. At this point, I will use ads and donations. In terms of Ads, instead of using Google, I would use BuySellAds or something similar. Why? Well, you can use this platform (or something similar) to buy ad placement on other sites (at good rates) and get paid for ad space on your site (more than Google's $2.00 per 6 months).
Also, people will not be as impacted by the Ads if the site is active.
For donations, I would launch a campaign. DON'T ask people to donate just because. This comes off as in "Please donate so I can spend your money on stuff that I want." Have a reason for the donations rather it's for hosting or for features. Again it's 2017, so unless your website blew up like Flappy Bird, then you shouldn't have a reason to ask people to donate for hosting!
Large Size Site - Both. At this point, people will be donating to you just to get a new title on the site. So I would allow people to donate but I wouldn't force it on people. I would force premium memberships. At this point, you should have some unique content for premium users. In terms of ads, it's based on your marketing and business model. If you are advertising on Google, then stick to Google Ads. I would have ads but allow users to disable ads if they have a premium subscription.
Professionally some websites don't have ads or donations on there because it provides no real value for them. If a company is making $1mil a month from its products, adding ads will not make that number go from $1mil to $1.5 mil. Also asking for donations can cause backfire if the company doesn't have a real valid reason. If a company want to raise money then that company should get an investor. No investor? Well, maybe that reason was pointless.
Facebook doesn't ask people to donate. They get investors.
Wiki asked for donations but now is owned by Wikimedia Foundation. If they want something, they will get investors.
Professionally, companies don't ask for donations, they get investors.