Discover how to create a taxcompliant donor receipt template that will help you engage donors and encourage more donations. 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. A donation receipt documents the details of a cash or property donation that's gifted to an individual cause or organization. Learn how to easily create your donation receipts and the best practices to follow in the year-end receipts to your donors. This step-by-step guide will help you fill out the donation tax receipt and get things in order for tax season. A receipt from the junkyard identifying the vehicle and date junked. Donated: A copy of the dated donation letter from the charity receiving the vehicle. 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.