Reset to factory, Mac 7.1 version 10.6.8
I want to factory reset my Mac 7.1 version OS X, 10.6,8 so I can donate
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To be honest, I would advise against donating that 2007 iMac (iMac7,1) to anyone or organization.
The fact is it's quite obsolete and has no upgrade path that wouldn't require a substantial investment in time and energy.
I recommend you wipe the drive and drop it off at an Apple store for recycling.
Please see: What to do before you sell, give away, or trade in your Mac - Apple Support
Optional to wiping, you might consider removing the drive from the computer and destroying it, then drop off the iMac shell for recycling at your fave tech recycler.