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A donation receipt documents details of a cash or property donation made to a charitable cause or organization. It serves as proof for individual taxpayers and organizations for tax deductions and write-offs. The video covers essential information about donation receipts, including their content and where to obtain an official template. Donations are defined as gifts of cash or property to charitable entities, which can include non-profit groups, institutions, and funds, and are generally tax-deductible. However, contributions to political campaigns or civic groups are not eligible for deductions. Common examples of deductible donations include those made to charitable organizations, religious groups, and educational institutions.