We've created this stepbystep guide on everything you need to know about creating a donation receipt letter for tax purposes. This receipt is issued to individuals who have donated cash or payment, personal property, or a vehicle and seek to claim the donation as a tax deduction.Please keep this written acknowledgement of your donation for your tax records. Learn how to easily create your donation receipts and the best practices to follow in the year-end receipts to your donors. Donation receipts are important! Here's how to create donation receipts your donors (and the IRS) will love. A donation receipt documents the details of a cash or property donation that's gifted to an individual cause or organization.