Many foundations don't accept full proposals cold. They ask for a letter first, and only the organizations whose letters fit go on to a full application. That gives you very little room to work with: a page or two to show a stranger that your project belongs in their portfolio.
This article explains what a letter of inquiry (LOI) is for, a structure that fits on one page, the mistakes that sink letters and what to do whether you're invited to apply or not.
What an LOI is for
An LOI helps a funder screen. It lets the foundation see whether your work matches its priorities before either side spends time on a full proposal. It also helps you: the letter forces you to state your project in plain terms before you build a full proposal around it.
Think of the LOI as a request for an invitation. It doesn't have to prove everything. It has to make the reader want to learn more.
Candid's guidance for grant seekers says letters of inquiry are short, no more than three pages, and describes an effective one as often harder to write than a full proposal. That's the right frame. A short document leaves nowhere to hide vague thinking.
Two cautions before you start:
- Follow the funder's instructions first. If the foundation gives a page limit, a form, a portal or a list of questions, use that and ignore any generic template. Foundations that publish LOI requirements mean them.
- Know the term's other uses. Federal notices sometimes ask for a letter of intent or a preapplication. Under 2 CFR 200.204, the key dates in a federal notice include due dates for any letters of intent or preapplications. Read the notice to see whether yours is required and what it must contain. Those are different documents from a foundation's LOI, though the same discipline applies.
A structure that fits on one page
Candid lists six sections for a letter: an introduction that works as an executive summary, an organization description, a statement of need, methodology, other funding sources and a final summary. If the funder hasn't told you what to include, you can use this order and keep each part tight.
- Opening. Name your organization, the project and the amount you plan to request. A reader should know your ask within the first few lines.
- The need. Describe the people and place affected, with one or two key statistics and a concrete example.
- The approach. Say what you will do, with major activities, key staff and a rough timeline.
- Your organization. Summarize your history and current programs, and show why you're the right group to do this work.
- Other support. Mention other funders you've approached, in a sentence or two.
- Closing. Restate the purpose, offer to answer questions and thank the reader.
Include attachments only if the funder asks for them.
A hypothetical example
Say a small community health clinic is writing to a foundation that accepts letters of up to two pages. Here is how it might budget about 500 words:
| Section | Approximate words |
|---|---|
| Opening with the ask | 70 |
| The need | 120 |
| The approach | 140 |
| Our organization | 90 |
| Other support and closing | 80 |
| Total | 500 |
The opening might read: "The Eastside Community Clinic requests $40,000 over twelve months to add evening diabetes education to its primary care services for about 200 adult patients." Everything the reader needs to judge fit is in that sentence: who, how much, how long, what for and for whom.
Notice what the budget leaves out. There's no history of the clinic's founding and no page of statistics. If the funder wants more, it will say so in an invitation.
Common mistakes
- Too long. If the guidelines say two pages, a two-and-a-half page letter signals that you don't read instructions.
- Too vague. "We help vulnerable families thrive" tells the reader nothing. Say how many families, doing what and where.
- No clear ask. The reader should never have to hunt for the amount or the purpose.
- Wrong funder. Sending a letter to a foundation whose past grants don't resemble your project wastes both sides' time. Researching foundations shows how to check before you write.
- A mass mailing. Each letter should reflect the funder's priorities and use its language. Candid advises sending it to the appropriate contact person at the foundation, or to its CEO, by the funder's preferred contact method.
- Skipping the conversation. If the funder welcomes calls, a brief conversation with a program officer before you write can tell you whether the letter is worth sending.
Reuse your own material, but don't reuse it blindly. The need statement from an earlier proposal is a good starting point, and the need statement explains how to keep it compact. Adjust the framing for the funder in front of you.
After you send it
You'll land in one of three places.
- An invitation to submit a full proposal. Read what the funder asks for, note the deadline and treat the LOI as the outline. The full proposal should be consistent with it. If the numbers or goals change, explain why.
- A decline. Thank the funder and, if the funder invites questions, ask whether there's anything you could do differently. Keep the relationship warm; fit can change.
- No answer. Check the guidelines for the expected response time before you follow up. Many funders say how long review takes. If the date has passed, send one polite note.
Record the outcome either way, along with anything the funder said. That's your best input for the next letter.
Your next step
Draft a one-page LOI for your strongest program. Use the six parts above, write the opening sentence with the amount first, and then trim until it fits one page. Hand it to someone who doesn't know the program and ask what they think you're requesting.
SoliContraX is built for the stretch between "we should apply" and "submitted". When a funder's guidelines spell out what an LOI must include, upload them and start from those requirements. Start your next application.