Reading a gift letter before you release restricted cash

Donor letters often mix warmth with conditions. Before a release from a restricted fund, pull the exact purpose sentence—not the thank-you paragraph—and place it beside the expenditure you plan to charge.

What to highlight

Mark time limits, geographic limits, program names, and any ban on overhead. If the letter points to a proposal appendix, retrieve that appendix; many Taiwan foundations treat the proposal budget as part of the covenant even when the cover letter is short.

A practical habit

Keep a one-page fund abstract for each active restricted balance: purpose quote, date received, remaining balance, and the last release approved. When board members ask why a fund cannot cover a shortfall, you can answer from the abstract instead of searching old email.

Net Analytic uses these abstracts as the starting point for donor-use audit reviews. If yours are missing, that gap itself becomes a finding worth fixing before the next funder visit.