Donovan was named a BMI "icon" last night following in the footsteps of Bryan Ferry, Peter Gabriel, James Brown and Dolly Parton.
The 63 year-old Scottish folk singer said it was a "beautiful honour" to receive the award solely for song-writing talent.
"It's not for records sold, it's not for good looks and it's not for the best dressed man, but it's for song-writing and that's a wonderful distinction," he said.
The awards ceremony, organised by the American music rights body Broadcast Music Inc, took place at London's Dorchester Hotel on Park Lane, honouring the past year's most performed songs on US radio and television.
Donovan performed two songs, including Catch The Wind, his 1965 Ivor Novello-winning debut single, the first song he recorded in London.
Speaking to 6 Music, he explained: "It's a singular honour and it's a very special honour because there's so few of them given out. I accept it on behalf of songwriters everywhere who may not get a chance to present their works as I have throughout my life, and continue to do so."
"I accept it on behalf of songwriters everywhere who may not get a chance to present their works as I have throughout my life."
Donovan
He labelled it a "beautiful honour", adding, "I'm very proud of it".
Donovan has been writing a new album titled Ritual Groove, and there are plans afoot for a world tour in 2010 and throughout 2011, which he admitted "won't be a farewell tour, although people wonder whether it will be".
Meanwhile Estelle (for American Boy), Duffy (for Mercy), KT Tunstall (for Hold On), Lady Gaga for (Just Dance) and Adele (for Chasing Pavements) were honoured with pop awards, for the most performances on US radio.
Songs which have totted up more than 17 years of continuous airplay in the states with more than three million radio and television performances - were also recognised.
Van Morrison's Brown Eyed Girl stormed the list with nine million performances, while Keith Richards and Sir Mick Jagger's Jumpin' Jack Flash and Wonderful Tonight by Eric Clapton were lauded after generating more than five million performances Stateside.
Double-platinum single Pocket Full of Sunshine, which Natasha Bedingfield co-wrote with Danielle Brisebois, was awarded the Robert S Musel Award for Song of the Year.
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