A Grant Proposal Letter of Intent (LOI) is a brief, preliminary document that introduces your organization and project to a potential funder before submitting a full grant proposal. Think of it as a “first impression” that allows funders to quickly assess whether your request aligns with their priorities and funding criteria.
Purpose and Function
The LOI serves multiple strategic purposes for both nonprofits and funders. For your organization, it’s an opportunity to test the waters without investing time in a full proposal that may not be competitive. For funders, it’s a screening tool that helps them manage application volume and provide early feedback to applicants.
Many foundations use LOIs to determine which organizations they’ll invite to submit full proposals, making this document a critical gateway in the funding process. Some funders make preliminary funding decisions based solely on LOIs, while others use them to offer guidance before full proposal submission.
When LOIs Are Required or Recommended
Required LOIs are mandatory first steps in many foundations’ application processes. The funder will explicitly state that full proposals are by invitation only after LOI review. Missing this step means you cannot apply for funding.
Optional LOIs are encouraged but not mandatory. Even when optional, submitting one is usually wise as it demonstrates respect for the funder’s process and allows you to receive feedback before investing in a full proposal.
Strategic LOIs can be submitted even when not explicitly requested, particularly for major funding requests or new relationships with foundations. This proactive approach shows professionalism and consideration for the funder’s time.
Essential Components
Executive Summary should capture your organization’s mission and the specific project in 2-3 sentences. Be clear and compelling from the opening line.
Statement of Need briefly describes the problem your project addresses, supported by key statistics or evidence. Keep this focused and locally relevant when possible.
Project Description outlines your proposed solution, including key activities, target population, and geographic scope. Be specific enough to demonstrate feasibility without overwhelming detail.
Organizational Capacity highlights your organization’s qualifications, relevant experience, and key staff expertise. Include brief information about successful similar projects.
Funding Request states the specific amount requested and the project timeline. Some LOIs also include a brief budget summary.
Expected Outcomes describes the anticipated impact and how you’ll measure success. Quantifiable goals strengthen your case.
Format and Style Guidelines
Most LOIs are 1-3 pages long, though specific length requirements vary by funder. Use a professional business letter format with clear, concise language. Avoid jargon and write for an audience that may not be familiar with your field.
Structure should flow logically from problem to solution to impact. Use subheadings if they improve clarity, but maintain a narrative flow rather than a checklist format.
Tone should be confident but not presumptuous. Express enthusiasm for the partnership opportunity while respecting the competitive nature of grant funding.
Research and Customization
Before writing, thoroughly research the funder’s priorities, geographic focus, funding history, and application guidelines. Your LOI should demonstrate clear alignment between your project and their interests.
Customization is crucial – generic LOIs are easily spotted and rarely successful. Reference the funder’s specific programs, recent grants, or stated priorities to show you’ve done your homework.
Relationship Building considerations matter. If you have existing connections to the foundation, mention them appropriately. If this is a new relationship, explain how you identified them as a potential funder.
Common Mistakes to Avoid
Information Overload defeats the LOI’s purpose. Save detailed budgets, extensive research citations, and comprehensive program descriptions for the full proposal.
Premature Submission without adequate research leads to poor alignment and wasted opportunities. Take time to understand the funder before reaching out.
Generic Language and boilerplate text suggest lack of genuine interest in the specific funder. Each LOI should feel personally crafted.
Ignoring Guidelines when specific LOI requirements are provided. Some funders have strict formats, submission methods, or required information.
Follow-Up and Next Steps
After submission, respect the funder’s timeline and communication preferences. Some foundations acknowledge receipt while others don’t. Avoid frequent follow-up calls unless you have specific questions about the process.
Positive Responses might include invitations to submit full proposals, requests for additional information, or suggestions for proposal modifications. Respond promptly and professionally to these opportunities.
Negative Responses or no response shouldn’t be taken personally. Use the experience to refine your approach for future applications, and maintain the relationship for potential future opportunities.
Feedback Incorporation is valuable when offered. Even if not invited to submit a full proposal, constructive feedback can strengthen future applications to the same or different funders.
The LOI represents your organization’s professionalism and strategic thinking. A well-crafted letter demonstrates that you understand the funder’s perspective, have a viable project, and can communicate effectively – all critical factors in successful grant relationships.
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