We've created this stepbystep guide on everything you need to know about creating a donation receipt letter for tax purposes. In many cases, charitable donations are tax-deductible.When you donate to a qualifying organization, you can deduct the amount from your taxable income. Generally, you can only deduct charitable contributions if you itemize deductions on Schedule A (Form 1040), Itemized Deductions. Donation acknowledgment letters are more than just a donor tax receipt. There are certain items to include for tax purposes. Medical and Dental Expense before Limitation. Enter the amount allowable as a deduction for medical and dental expenses under IRC section 213 for tax year 2019.