Donald had expressed his desire to sell as recently as January, having promised not to “outstay his welcome” when he took over from Ellis Short in 2018.
Sunderland failed to achieve their primary objective of promotion from the third tier in each of his two seasons as owner, something Donald has taken personal responsibility for.
“Holding this position has been a privilege, and not one I have given up lightly,” Donald said in a club statement.
“Results and performances on the pitch have simply not been at a level befitting of Sunderland’s history and potential.
“I fully recognise that has caused immense hurt and, ultimately, the buck for the club starting a third successive season in League One stops with me.
“To give the club the best chance of achieving its goals, I have made the judgement that it is right for me to step back from the chairmanship.
“In recent months, we have assembled a strong board with relevant experience and skill-sets.
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“As the majority stakeholder, my remaining responsibility is to ensure that the club has the requisite financial backing to achieve its primary objective of promotion, and I can assure supporters that the club will continue to have the highest playing budget in this division.
“Otherwise, my intention remains to sell SAFC to a suitable new owner, and I remain personally committed to that goal.”
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Sunderland suffered double Wembley heartache in Donald’s first season at the helm, with a penalty shootout defeat to Portsmouth in the Checkatrade Trophy final, followed by a play-off final defeat to Charlton in 2019.
This season saw the Black Cats part ways with manager Jack Ross and bring in Phil Parkinson but the club missed out on the play-off places by a point in eighth, following the curtailment of the season due to the coronavirus pandemic.
“I would like to place on record my gratitude for the wonderful support that I have received since my arrival at the Stadium of Light,” Donald added.
“Without that support, the club would currently be facing a very uncertain future, as so many others are.
“Instead, starting from a position of relative financial stability, I hope that this moment will provide a springboard to the success that we all crave and SAFC fans deserve.”
The club also confirmed that a new chairman will be appointed in due course following the next board meeting.
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