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A donation receipt serves as documentation for cash or property donations made to a charitable cause or organization. It is important for organizations and individual taxpayers as it provides proof of charitable contributions that can be used for tax deductions. The video reviews essential information about donation receipts, including their content and official templates. A donation is defined as a gift to a charitable organization or campaign, and the IRS acknowledges various contributions to non-profit entities as tax-deductible, while donations to political campaigns or civic groups typically are not. Common examples of charitable donations include those made to charitable organizations, religious groups, and educational funds.