Paddy Bradley helped Derry reach the Division One final
Derry saw off National League holders Donegal to secure their place in the Division One final where they will face All-Ireland champions Kerry.
Conleth Gilligan and Paddy Bradley each scored three points in the first half as Paddy Crozier's side threatened to run away with it at Letterkenny.
But several scores from Colm McFadden kept Donegal in the contest.
Mark Lynch, Michael McIver and Enda Muldoon were among the scorers for the Oak Leaf side in the second half.
Derry defender Kevin McGuckin was dismissed for picking up two yellow cards.
Kerry overcame Galway by 0-15 to 0-10 at Pearse Park.
Derry manager Paddy Crozier said: "At the start of the year we were looking for consistency and we seem to have got to grips with that.
"Kerry are not often beaten in finals but we will return to training on Tuesday night and you never know what will happen in two weeks' time."