Nonprofit organizations must apply for exemption with the Comptroller's office and receive exempt status before making tax-free purchases. Include Volunteer Activity.We've created this stepbystep guide on everything you need to know about creating a donation receipt letter for tax purposes. Texas Applications for Tax Exemption. The forms listed below are PDF files. No cash or non-cash donation is deductible unless the taxpayer has a receipt from the charity substantiating the donation. Provide a written acknowledgment to the item's donor. In many cases, charitable donations are tax-deductible. When you donate to a qualifying organization, you can deduct the amount from your taxable income. Attn: Special Plate Dept.