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HRoth - thank you for posting. The question on when to invoice is certainly worthy of discussion, perhaps in a different thread. However, I am seeking input on whether it is appropriate to send a cancellation letter to a gift recipient that has received a gift announcement.
I would feel weird about getting a notice that my gift was canceled. It just feels to personal, as if you were going out on your own to explain the buyers behavior without asking them first, rather then just filling an order. What if the customer starts asking why? etc. are you going to start relaying messages? Explain the lack of credit on their card? Tell them to call the buyer who does not want to talk about it? Not getting anything feels more professional.