<SUBMISSION>
<ACCESSION-NUMBER>0001005477-03-002505
<TYPE>4
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20030701
<FILING-DATE>20030730
<ISSUER>
<COMPANY-DATA>
<CONFORMED-NAME>DONEGAL GROUP INC
<CIK>0000800457
<ASSIGNED-SIC>6331
<IRS-NUMBER>232424711
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<BUSINESS-ADDRESS>
<STREET1>1195 RIVER RD PO BOX 302
<CITY>MARIETTA
<STATE>PA
<ZIP>17547-0302
<PHONE>7174261931
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1195 RIVER ROAD
<STREET2>BOX 302
<CITY>MARIETTA
<STATE>PA
<ZIP>17547
</MAIL-ADDRESS>
</ISSUER>
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>NIKOLAUS DONALD H
<CIK>0001251060
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>4
<ACT>34
<FILE-NUMBER>000-15341
<FILM-NUMBER>03810884
</FILING-VALUES>
<MAIL-ADDRESS>
<STREET1>1520 QUARRY ROAD
<STREET2>PO BOX 286
<CITY>SILVER SPRING
<STATE>PA
<ZIP>17575
</MAIL-ADDRESS>
</REPORTING-OWNER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar123.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType>
    <periodOfReport>2003-07-01</periodOfReport>
    <notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0000800457</issuerCik>
        <issuerName>DONEGAL GROUP INC</issuerName>
        <issuerTradingSymbol>DGICA/B</issuerTradingSymbol>
    </issuer>

    <reportingOwner>

        <reportingOwnerId>
            <rptOwnerCik>0001251060</rptOwnerCik>
            <rptOwnerName>NIKOLAUS DONALD H</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1520 QUARRY ROAD, PO BOX 286</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SILVER SPRING</rptOwnerCity>
            <rptOwnerState>PA</rptOwnerState>
            <rptOwnerZipCode>17575</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
        <isDirector>1</isDirector>
        <isOfficer>1</isOfficer>
        <isTenPercentOwner>0</isTenPercentOwner>
        <isOther>0</isOther>
        <officerTitle>President &amp; CEO</officerTitle>
    </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>

        <securityTitle>
            <value>Common Stock - Class A - Employee Stock Purchase Plan</value>
        </securityTitle>

        <transactionDate>
            <value>2003-07-01</value>
        </transactionDate>
    <transactionCoding>
        <transactionFormType>5</transactionFormType>
        <transactionCode>A</transactionCode>
        <equitySwapInvolved>0</equitySwapInvolved>
    </transactionCoding>
        <transactionAmounts>

            <transactionShares>
                <value>1920</value>
            </transactionShares>

            <transactionPricePerShare>
                <value>10.1575</value>
            </transactionPricePerShare>

            <transactionAcquiredDisposedCode>
                <value>A</value>
            </transactionAcquiredDisposedCode>
        </transactionAmounts>
        <postTransactionAmounts>

            <sharesOwnedFollowingTransaction>
                <value>135294.734</value>
            </sharesOwnedFollowingTransaction>
        </postTransactionAmounts>
        <ownershipNature>

            <directOrIndirectOwnership>
                <value>D</value>
            </directOrIndirectOwnership>
        </ownershipNature>
        </nonDerivativeTransaction>

        <nonDerivativeHolding>

        <securityTitle>
            <value>Common Stock - class A</value>
        </securityTitle>
        <postTransactionAmounts>

            <sharesOwnedFollowingTransaction>
                <value>717.19</value>
            </sharesOwnedFollowingTransaction>
        </postTransactionAmounts>
        <ownershipNature>

            <directOrIndirectOwnership>
                <value>I</value>
            </directOrIndirectOwnership>

            <natureOfOwnership>
                <value>Spouse</value>
            </natureOfOwnership>
        </ownershipNature>
        </nonDerivativeHolding>

        <nonDerivativeHolding>

        <securityTitle>
            <value>Common Stock - Class A</value>
        </securityTitle>
        <postTransactionAmounts>

            <sharesOwnedFollowingTransaction>
                <value>11400.000</value>
            </sharesOwnedFollowingTransaction>
        </postTransactionAmounts>
        <ownershipNature>

            <directOrIndirectOwnership>
                <value>I</value>
            </directOrIndirectOwnership>

            <natureOfOwnership>
                <value>Family Foundation</value>
            </natureOfOwnership>
        </ownershipNature>
        </nonDerivativeHolding>

        <nonDerivativeHolding>

        <securityTitle>
            <value>Common Stock - Class B</value>
        </securityTitle>
        <postTransactionAmounts>

            <sharesOwnedFollowingTransaction>
                <value>70400.812</value>
            </sharesOwnedFollowingTransaction>
        </postTransactionAmounts>
        <ownershipNature>

            <directOrIndirectOwnership>
                <value>D</value>
            </directOrIndirectOwnership>
        </ownershipNature>
        </nonDerivativeHolding>

        <nonDerivativeHolding>

        <securityTitle>
            <value>Common Stock - Class B</value>
        </securityTitle>
        <postTransactionAmounts>

            <sharesOwnedFollowingTransaction>
                <value>337.476</value>
            </sharesOwnedFollowingTransaction>
        </postTransactionAmounts>
        <ownershipNature>

            <directOrIndirectOwnership>
                <value>I</value>
            </directOrIndirectOwnership>

            <natureOfOwnership>
                <value>Spouse</value>
            </natureOfOwnership>
        </ownershipNature>
        </nonDerivativeHolding>

    </nonDerivativeTable>
    <derivativeTable>
        <derivativeHolding>

        <securityTitle>
            <value>Options - Class A</value>
        </securityTitle>

        <conversionOrExercisePrice>
            <value>8.00</value>
        </conversionOrExercisePrice>

        <exerciseDate>
            <value>2001-07-01</value>
        </exerciseDate>

        <expirationDate>
            <value>2004-12-16</value>
        </expirationDate>
        <underlyingSecurity>

            <underlyingSecurityTitle>
                <value>Common Stock</value>
            </underlyingSecurityTitle>

            <underlyingSecurityShares>
                <value>66667</value>
            </underlyingSecurityShares>
        </underlyingSecurity>
        <postTransactionAmounts>

            <sharesOwnedFollowingTransaction>
                <value>66667</value>
            </sharesOwnedFollowingTransaction>
        </postTransactionAmounts>
        <ownershipNature>

            <directOrIndirectOwnership>
                <value>D</value>
            </directOrIndirectOwnership>
        </ownershipNature>
        </derivativeHolding>

        <derivativeHolding>

        <securityTitle>
            <value>Options - Class B</value>
        </securityTitle>

        <conversionOrExercisePrice>
            <value>8.00</value>
        </conversionOrExercisePrice>

        <exerciseDate>
            <value>2002-07-01</value>
        </exerciseDate>

        <expirationDate>
            <value>2004-12-16</value>
        </expirationDate>
        <underlyingSecurity>

            <underlyingSecurityTitle>
                <value>Common Stock</value>
            </underlyingSecurityTitle>

            <underlyingSecurityShares>
                <value>33333</value>
            </underlyingSecurityShares>
        </underlyingSecurity>
        <postTransactionAmounts>

            <sharesOwnedFollowingTransaction>
                <value>33333</value>
            </sharesOwnedFollowingTransaction>
        </postTransactionAmounts>
        <ownershipNature>

            <directOrIndirectOwnership>
                <value>D</value>
            </directOrIndirectOwnership>
        </ownershipNature>
        </derivativeHolding>

        <derivativeHolding>

        <securityTitle>
            <value>Options - Class A</value>
        </securityTitle>

        <conversionOrExercisePrice>
            <value>14.00</value>
        </conversionOrExercisePrice>

        <exerciseDate>
            <value>2004-01-01</value>
        </exerciseDate>

        <expirationDate>
            <value>2006-07-19</value>
        </expirationDate>
        <underlyingSecurity>

            <underlyingSecurityTitle>
                <value>Common Stock</value>
            </underlyingSecurityTitle>

            <underlyingSecurityShares>
                <value>100000</value>
            </underlyingSecurityShares>
        </underlyingSecurity>
        <postTransactionAmounts>

            <sharesOwnedFollowingTransaction>
                <value>100000</value>
            </sharesOwnedFollowingTransaction>
        </postTransactionAmounts>
        <ownershipNature>

            <directOrIndirectOwnership>
                <value>D</value>
            </directOrIndirectOwnership>
        </ownershipNature>
        </derivativeHolding>

        <derivativeHolding>

        <securityTitle>
            <value>Options - Class A</value>
        </securityTitle>

        <conversionOrExercisePrice>
            <value>12.00</value>
        </conversionOrExercisePrice>

        <exerciseDate>
            <value>2005-09-01</value>
        </exerciseDate>

        <expirationDate>
            <value>2008-04-17</value>
        </expirationDate>
        <underlyingSecurity>

            <underlyingSecurityTitle>
                <value>Common Stock</value>
            </underlyingSecurityTitle>

            <underlyingSecurityShares>
                <value>150000</value>
            </underlyingSecurityShares>
        </underlyingSecurity>
        <postTransactionAmounts>

            <sharesOwnedFollowingTransaction>
                <value>150000</value>
            </sharesOwnedFollowingTransaction>
        </postTransactionAmounts>
        <ownershipNature>

            <directOrIndirectOwnership>
                <value>D</value>
            </directOrIndirectOwnership>
        </ownershipNature>
        </derivativeHolding>

    </derivativeTable>
    <ownerSignature>
        <signatureName>/s/ Donald Nikolaus</signatureName>
        <signatureDate>2003-07-29</signatureDate>
    </ownerSignature>

</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
