what is this for?

i came back to ponytown after a 5 year hiatus recently and noticed this. i clicked on it and it said to donate toys but do the toys disappear from my inventory after?

https://preview.redd.it/p208naoj6w4g1.png?width=617&format=png&auto=webp&s=a7495b7c2c3129796486159458b3c66b5186dd6a