You need to show the two missing properties: locality and gluing.
Locality is trivial for any presheaf where sections are functions and restriction is the usual restriction of functions:
Assume $U=\bigcup_{i\in I} U_i$ and we have $s,t\in \Gamma(U)$ such that $\operatorname{res}^U_{U_i}(s)=\operatorname{res}^U_{U_i}(t)$. We want to show $s=t$. Since $s,t$ are functions with domain $U$, we need to show that $s(u)=t(u)$ holds for all $u\in U$. OK, so let $u\in U$. Then $u\in U_i$ for some $U_i$ (it's a covering after all). Then $s(u)=s|_{U_i}(u)=\operatorname{res}^U_{U_i}(s)(u)=\operatorname{res}^U_{U_i}(t)(u)=t|_{U_i}(u)=t(u)$, as desired.
It is also clear what happens with gluing: Mere functions can always be glued. Given $U=\bigcup_{i\in I} U_i$ and sections $s_i\in\Gamma(U_i)$ such that $\operatorname{res}^{U_i}_{U_i\cap U_j}(s_i)=\operatorname{res}^{U_j}_{U_i\cap U_j}(s_j)$ always holds, we can define a function $s\colon U\to \Bbb R$ by letting $s(u)=s_i(u)$ where $i\in I$ is arbitrary with $u\in U_i$. This is always possible because the $U_i$ form a cover, and this is well-defined precisely because of the given condition for restrictions.
The problem is just that it is not sufficient to merely have a function $s\colon U\to \Bbb R$, but rather a differentiable function.
But as you correctly notice, differentiability is a local property.
The function $s$ is differentiable iff it is differentiable at every point $u\in U$, and in order to prove that (and even compute the derivative) it suffices to "know" $s$ only in an open neighbourhood of $u$ -- such as an $U_i$ with $u\in U_i$.
So indeed, for any spaces $X,Y$ and any local property $\Phi$ the presheaf given by $\Gamma(U)=\{\,f\colon U\to Y\mid f\text{ has property }\Phi\,\}$, together with $\operatorname{res}^U_V(s)=s|_V$ for $V\subseteq U$ and $s\in \Gamma(U)$, is always a sheaf in the above somewhat obvious way.
The "fun with sheaves" really begins when $\Gamma(U)$ is not actually a set of functions ...