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. Setting up this program for your nonprofit, as well as figuring out how to track, record, and acknowledge donations, can be a challenge.