Team members are working towards personal goals (i.e. for a prize). You are wondering: Is a participant's individual donation applied to their team fundraising total?
If someone donates to the participant via their personal page, it will reflect on the participant's total and on the team total. So the answer is yes.
In order to avoid team page donations, the administrator can configure the system to only allow donations or pledges for individuals by setting "Team Fundraising Pages" to NO under Pledge -> Settings. This action does not do away with teams.