We discuss the binding energy E_b of impurities in semiconductors within
density functional theory (DFT) and the GW approximation, focusing on donors in
nanowires as an example. We show that DFT succeeds in the calculation of E_b
from the Kohn-Sham (KS) hamiltonian of the ionized impurity, but fails in the
calculation of E_b from the KS hamiltonian of the neutral impurity, as it
misses most of the interaction of the bound electron with the surface
polarization charges of the donor. We trace this deficiency back to the lack of
screened exchange in the present functionals