Both the Santiago and Hernandez guest houses at the jeepney corner in Donsol are good budget places to stay for the backpacker.
It is just a short walk to the market and a 15 peso jeepney ride to the
tourist center in the mornings from where the boats leave to look at
the whale sharks. The rooms start at 400 pesos. I haven't stayed there but talked with other tourists that have and they found the place to be acceptable. My first choice would be the Santiago guest house just across the street.
The one thing that the Hernandez has is a sweet little monkey in a cage on the patio.
Their restaurant serves pretty good food and it's a comfortable place to grab a cold beer and sit at one of the tables on the sidewalk.