Understanding and Using Restriction Releases in GrantLink

A restriction release records that a donor's time or purpose restriction has been met. In GrantLink, a release reduces the restricted net asset balance of a donor-restricted grant. It doesn't create another expense or move cash.

GrantLink keeps releases you record yourself and release entries synced from QuickBooks Online in one register. You can link each release to the grant expenses that support it, review problems, and keep an audit trail.

Important: Recording a release in GrantLink doesn't post a journal entry to QuickBooks. Use GrantLink to keep the release schedule, and work with your accountant on the general ledger entry. If the entry is already in QuickBooks, use the QuickBooks workflow below instead of recording a duplicate release.

For the accounting concepts behind releases, see Understanding Net Assets Released from Restriction.

What a release is and isn't

When a donor-restricted grant meets its restriction, the released amount moves from with donor restrictions to without donor restrictions for financial reporting.

A release is:

• A dated reclassification of net assets
• Tied to one donor-restricted grant
• Supported, when it applies, by approved or posted expenses for that grant

A release isn't:

• A cash receipt or payment
• A new grant expense
• An expense allocation
• A second copy of the other side of a QuickBooks release entry

GrantLink shows grant spending and releases separately. An expense can show why a restriction was met, but linking it to a release doesn't change its allocation or count it again.

Before you start

Anyone in your organization can review releases, including Viewers. Recording a release, choosing a grant for a synced release, and adding or removing expense evidence require the Member or Admin role. Some of these controls are visible to Viewers, but GrantLink rejects the change.

Confirm that the grant is donor-restricted

You can record or assign a release only for a donor-restricted grant. Grants without donor restrictions don't appear in Restricted funds or in the list of grants for a synced release. If you try to create a release for such a grant from its allocations, GrantLink rejects it.

Choose the right workflow

Use one source for each release:

Don't record a release in GrantLink for an entry that GrantLink will also sync from QuickBooks.

Option 1: Record a release yourself

1. Open Grants > Restricted funds.
2. Select the grant. Record release is available for grants with the Time/Purpose restriction type.
3. Select Record release. If the grant has spending that is ready to release, you can select the Release button with that amount instead, and GrantLink fills in the amount.
4. In Record restriction release, enter the Release amount.
5. Choose the Effective date, which is the date the restriction was met for your reporting schedule. It starts as today's date.
6. Choose a Release reason:
   • Qualifying expenses incurred
   • Time restriction elapsed
   • Asset placed in service
   • Prior eligible costs
   • Simultaneous recognition and release
   • Donor modification
   • Other
7. Optionally add a Notes or evidence reference that explains the basis for the release.
8. Select Record release.

GrantLink saves the release as approved. Recording it doesn't move cash, create an expense, change allocations, or post to QuickBooks.

The Release action under Ready to release at the top of the page works differently. It records one release for each grant with ready spending, and it doesn't link any expenses as evidence. Add evidence to those releases afterward if your policy requires it.

Option 2: Create a release from qualifying expenses

Use this workflow when approved or posted expenses are the evidence for the release:

1. Open the donor-restricted grant, and then select Transactions > Allocations.
2. Select one or more expense rows.
3. Select Create release in the selection bar. It appears only when every selected row is an expense.
4. Check the amount and the selected expenses in the dialog.
5. Confirm the Effective date, the Release reason, and any notes. The reason starts as Qualifying expenses incurred.
6. Select Record release.

GrantLink fills in the release amount from the selected expenses and links them as evidence. Only expense rows can be evidence. A release line from QuickBooks can't support another release.

Option 3: Track releases from QuickBooks

If your finance team records release entries in QuickBooks, set up GrantLink to find them.

Set up the organization's release accounts

1. Open Settings > QuickBooks > Mapping.
2. Find Restricted activity account mapping.
3. Choose the Release account, which is the account used for the release side of the entry.
4. Choose a different Paired account for the other side.
5. Select Save accounts.
6. Sync QuickBooks.

You can't use the same QuickBooks account for both sides. A release moves net assets between equity or revenue accounts, so GrantLink rejects an asset or liability account, such as Accounts Receivable, on either side. If an existing mapping uses one, Grants > Restricted funds lists it first on the checklist with Fix release accounts, and you can't close the year until you fix it. GrantLink treats only the release account line as the release. Don't allocate or link both sides of the entry as releases.

If one grant uses different accounts, open the grant's Details. In the QuickBooks section, select Manage, and then go to Accounting setup and Restriction releases. Set the Release expense account and Release income account for that grant. Grants without their own accounts use the organization's accounts.

Review synced releases

Open Grants > Restricted funds, and then go to Releases:

• All releases shows the organization's release register.
• Needs attention shows QuickBooks release entries that GrantLink couldn't assign to one grant.

QuickBooks release entries dated before GrantLink started tracking restricted funds are covered by beginning balances. They don't block closing a year, even if they appear in Needs attention.

When the QuickBooks entry's Class, Customer, or Project points to one donor-restricted grant, GrantLink assigns the release automatically. If the entry has no grant tracking, choose the right grant with Select grant. The assignment changes GrantLink only. It doesn't edit QuickBooks.

If the entry's QuickBooks tracking points to more than one grant, conflicts, or isn't valid, GrantLink shows Resolve in QuickBooks. Correct the transaction or its tracking in QuickBooks, and then sync again. GrantLink doesn't let you override tracking that comes from QuickBooks.

Add and review expense evidence

Expense evidence shows the qualifying costs that support a release. It is separate from the QuickBooks release entry.

To review a release, follow these steps:

1. Open Restricted funds > Releases.
2. Select Review evidence on the release row to open the Release record.
3. Review Amount, Evidence, Unexplained, and Evidence status.

The evidence statuses mean:

To add evidence to an active release that still has an unexplained amount, follow these steps:

1. Open the Release record.
2. Select Add evidence.
3. In Add expense evidence, select one or more expenses.
4. Check the Amount to apply, which GrantLink fills in.
5. Select Add evidence.

GrantLink lists only expenses from QuickBooks with a positive amount that are approved or posted and allocated to the same grant. An expense amount that already supports another active release isn't available again. To remove an expense from an approved release, select the remove button next to it.

Not every release depends on expenses. For example, an elapsed time restriction, a donor change, or an asset placed in service may need other support. Choose the right release reason, and use the notes or your own files to identify the support that your accounting policy requires.

Correct a release

GrantLink doesn't currently have a control to reverse a release. If a release is wrong, contact GrantLink support. If the release came from QuickBooks, also correct the entry in QuickBooks under your normal accounting controls, and then sync.

The Release record also shows Review QuickBooks journal. Release journal entries aren't available yet, and Settings > QuickBooks > Permissions doesn't have an option for them. Until they are available, the review shows that posting is unavailable, and QuickBooks doesn't change.

Export the release register

Use the register when you need a release schedule for reconciliation or review:

1. Open Restricted funds, and then Releases.
2. Select All releases.
3. Select Export.
4. In Export releases, choose a fiscal year or All time as the Reporting period.
5. Select Export.

The workbook has Summary, Release Register, and Supporting Expenses sheets for the selected period. Before you rely on it for a close or an audit, clear the Needs attention list and review releases with missing, partial, or over-supported evidence.

Month-end steps

1. Confirm that restricted grants have the right restriction type in GrantLink.
2. Approve or post the qualifying expense allocations.
3. Record release entries in QuickBooks under your accounting policy, or prepare the GrantLink release schedule if you handle the entries separately.
4. Sync QuickBooks and review Restricted funds > Releases > Needs attention.
5. Assign a grant in GrantLink only to entries that have no grant tracking. Correct other problems in QuickBooks.
6. Link qualifying expenses as evidence, and look into unexplained amounts.
7. Compare releases with restricted fund balances and the general ledger.
8. Export the release register for your reviewer, accountant, or audit file.

See Tracking Restricted vs Unrestricted Funds for broader guidance on fund tracking, and Maintaining Audit-Ready Documentation for documentation practices.

What GrantLink doesn't do

GrantLink organizes releases, QuickBooks details, expense evidence, problems to fix, restricted fund balances, exports, and activity history. It doesn't decide when a donor restriction has been met. It doesn't post a release you record in GrantLink to QuickBooks, and it doesn't replace your organization's accounting policy and professional review.