Learn how to easily create your donation receipts and the best practices to follow in the year-end receipts to your donors. In many cases, charitable donations are tax-deductible.When you donate to a qualifying organization, you can deduct the amount from your taxable income. Include the nonprofit's EIN so the the donor can to check the charity's tax-exempt status with the IRS. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases. In this post, we'll outline the various tax forms your donors need and how Paybee can help your nonprofit issue such receipts. Not all contributions are tax deductible. The letter should also state that no goods or services were provided in exchange for the gift. 2) if you end up using it, you need to mention why you're doing so and how long you would in the donation receipt. Religion: Many faiths promote charitable giving to assist others and make a positive difference in the world.