We've created this stepbystep guide on everything you need to know about creating a donation receipt letter for tax purposes. 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.Donation receipts are important! Here's how to create donation receipts your donors (and the IRS) will love. Please keep this written acknowledgement of your donation for your tax records. This step-by-step guide will help you fill out the donation tax receipt and get things in order for tax season. Learn how to easily create your donation receipts and the best practices to follow in the year-end receipts to your donors. A donation receipt documents the details of a cash or property donation that's gifted to an individual cause or organization. Preparing Your Donation. And measurement of tax positions taken or expected to be taken in a tax return.