We've created this stepbystep guide on everything you need to know about creating a donation receipt letter for tax purposes. Giving receipts is an important practice since 501(c)(3) donations are tax-deductible to the donor.Our sample form provides an easy way to get started. A donation receipt documents the details of a cash or property donation that's gifted to an individual cause or organization. Donation receipts are important! Here's how to create donation receipts your donors (and the IRS) will love. Learn how to easily create your donation receipts and the best practices to follow in writing a great one. This publication explains how individuals claim a deduction for charitable contributions. In that case, all you need to provide in the donation receipt is the name and EIN of the organization, date of donation, and a description of the donated item. Another potential mistake is not fully understanding the concept of voluntary donations.