Donation receipts are important! Here's how to create donation receipts your donors (and the IRS) will love.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. Out-of-pocket expenses when donating your services. Collect and keep all relevant documentation that supports your charitable contributions. A donation receipt documents the details of a cash or property donation that's gifted to an individual cause or organization. We've created this stepbystep guide on everything you need to know about creating a donation receipt letter for tax purposes. Automated receipts will save you a lot of time in the long run. Are not in compliance per auditor's letter in the link below.