Frederick Joseph Donovan, 60, proprietor of a restaurant, a real estate business and a charter boat service for fisherman, died of cancer Saturday at his home in Chesapeaka Beach, Md.

In addition to his business interests, Mr. Donovan had served a two-year appointment as mayor of Chesapeake Beach in 1963 and 1964, had served on a special committee for the desegregation of the Calvert County public schools in the 1950s, and had served two terms on the Calvert Memorial Hospital Board.

From 1971 to 1976, he was a commissioner of the District Court of Calvert County.

Mr. Donovan also had been active in Alcoholics Anonymous. He was a member of the Washington and Annapolis Intergroups of the AA and had started an AA program at the Hughesville Correctional Camp in Hughesville, Md. In 1972, suspended Gov. Marvin Mandel appointed him to the Governor's Council on Alcoholism.

Mr. Donovan was born in South Boston, Mass. He graduated from Boston College in 1939. During World War II, he served in the Marine Corps and was wounded in the fighting on Saipan in the Pacific. He moved to Chesapeake Beach following his discharge in 1945.

He was a member of St. Anthony's Parish in North Beach, Md.

Survivors include five children, Diane Harrison, of Springfield, Va., Gail Harkins, of Salisbury, Md. and Gerald Donovan, Joan Roach and Frederick J. Donovan II, all of Chesapeake Beach; a sister, Mary Murphy, of Boston, and 10 grandchildren.

The family suggests that expressions of sympathy be in the form of contributions to the American Cancer Society or to the Calvert Memorial Hospital, Prince Frederick, Md.