As a nonprofit corporation how can we legally use 1 to 2 minute clips of music on a DVD we are producing to be made available for a "donation".

I'm sure this is not what you want to hear, but music companies do not all have the same licensing policies. You will have to contact each music company to determine their policy. The fact that you are a non-profit organization does not entitle you under the law to distribute copyrighted material you don't own. Even though you purchased the CDs containing the music, that does not give you a license to distribute the music or even cuts of the music for money. Charge or donation; it is all the same thing . . . money is being paid for copyrighted material. The "fair use" exemption does not appear to apply to what you are doing.

Copy write rules always apply. always.

Contact the record company and find whomever makes these kinds of decisions and communicate. Come to a written agreement and best of luck.