We've created this stepbystep guide on everything you need to know about creating a donation receipt letter for tax purposes. Donation receipts are important!Here's how to create donation receipts your donors (and the IRS) will love. Learn how to easily create your donation receipts and the best practices to follow in the year-end receipts to your donors. The below forms are for Franklin Templeton funds. Do NOT use these forms for Western Asset Money funds. General. This step-by-step guide will help you fill out the donation tax receipt and get things in order for tax season. Our first step will be setting up our donation receipt template. We're going to use a Microsoft Word document as our template. A donation receipt documents the details of a cash or property donation that's gifted to an individual cause or organization.