We've created this stepbystep guide on everything you need to know about creating a donation receipt letter for tax purposes. Nonprofit or exempt organizations do not have a blanket exemption from sales and use taxes.Some sales and purchases are exempt from sales and use taxes. In many cases, charitable donations are tax-deductible. When you donate to a qualifying organization, you can deduct the amount from your taxable income. File applications for tax exemptions with the IRS and California. Franchise Tax Board (FTB). Your assistance means so much to us but even more to families we work with. No goods or services were provided in exchange for this donation. Generally, you can only deduct charitable contributions if you itemize deductions on Schedule A (Form 1040), Itemized Deductions.