If I had donations for my servers I could make them a ton better, a lot of modders like to work for money (for big projects) and I can't pay them because I can't support them, hosting and my own personnel things I do. I have a lot of generous friends that make me mods (Ipqaurx, Danny Boy, Darren, etc) but sometimes there are things they can't do (modeling, CityRPG, etc).
Host's on blockland are very generous, they put their time into their servers just so others can have a good time. They usually don't expect much to come out of it (other than popularity), if every player just gave $5 we could support hosting and pay good modders to help with their servers.
