Donald the NPC never let people send or receive items. I never understood why they put him in the game in the first place.
it used to work ^
iirc it used to work but they removed the feature due to dupe exploits. Or maybe that was Duey.
Donald never worked for me but Duey did. I missed Duey. He was great because you never had to bother people to meet you to give them an item.