The 29-year-old wideman arrived at Edgar Street Stadium at the beginning of January after being released from his contract at Brackley Town, signing on the same day as fellow Bermudian international Keziah Martin from Buxton.
Donawa made 14 appearances for the Bulls, scoring in the 5-2 win over Chester.
"I've got so much respect and admiration for Justin and the way he’s handled himself,” said Hereford manager Aaron Downes.
"He’s come over from a small island to fulfil a dream that he set out as a young boy, to play football in England. He achieved that and I respect him for that.
"I understand myself, coming from a small town in Australia, how hard that is."
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