George W. Donaghey was born in Oakland, Louisiana. From 1882 to 1883 Donaghey attended the University of Arkansas. Donaghey was a school teacher, carpenter, and studied both architecture and structural engineering. Donaghey established his residence at Conway, Arkansas in 1883 and adopted it as his hometown.
Donaghey entered business as a contractor and constructed courthouses in Texas and Arkansas. He also built ice plants and roads in Arkansas and constructed water tanks and railroad stations for the Choctaw, Oklahoma, and Gulf Railroad.
Donaghey was elected Governor of Arkansas in 1908 running on a "Complete the Capitol" program. The Arkansas capital building project had languished for many years. He was reelected in 1910. During his term Donaghey's administration focused on roads, public health, and railroads. His administration established four agricultural high schools that later developed into Arkansas State University, Arkansas Tech University, Southern Arkansas University, and the University of Arkansas at Monticello. Donaghey was also personally responsible for eliminating the convict-lease system by pardoning 360 convicts making the leases worthless.
After leaving office Donaghey served on a number of boards and commissions responsible for a variety of tasks such as constructions, education, and charities. Donaghey wrote a book, "Build a State Capitol" which detailed the construction of the Arkansas capitol building.
George W. Donaghey died in Little Rock, Arkansas. Donaghey is buried at the Roselawn Memorial Park Cemetery in Little Rock, Arkansas.