yes it will select all from both tables.
If you minimize what you select, you usually get a faster response, so if you just wanted to get from one table, do this:
SELECT T1.*, T2.field1, T2.field2
FROM
T1 LEFT JOIN T2 ON ...
FYI you can left join a table on itself in certain cases, so in this case you would give each instance a name:
SELECT
donors., sponsors.
FROM
T1 donors LEFT JOIN T1 sponsors ON
donors.parent_id = sponsors.id
WHERE sponsors.id IS NOT NULL
This would get you all donors with a sponsor (where donors and sponsors are both records in the same table).
HTH
Sam