Many foundations now prefer that your nonprofit send a letter of inquiry (LOI) rather than a full proposal when first asking for grant money.
Some foundations find that it is faster to make that first cut of possible funding ideas if they are just looking at a 2-3 page letter rather than a full proposal package. Once the foundation ascertains that your project may be a good fit for its goals and funding priorities, it may ask that you send a full blown proposal.
What Should be Included in the Letter of Inquiry?
The letter of inquiry is very similar to a proposal except that it is short...a mini-proposal. You might draw the elements of the LOI from a grant proposal that you have already constructed and that may even be partially funded. Or you may certainly use the information that you are in the process of putting together for a proposal. Sending a LOI before you finalize a final proposal is a way to get valuable feedback that you can use to revise your proposal ideas.Here are the common elements of the typical letter of inquiry:
- Introduction
The introduction is a short executive summary. It includes the name of your organization, the amount of money being requested, and a description of the project involved. You'll want to indicate how the project fits with the funder's guidelines and funding interests.
- Organizational Description
Be concise and concentrate on your organization's ability to meet the need that you've stated. Give a brief history of your nonprofit and give a capsule of your programs. Make sure to directly connect what you currently do and what you want to accomplish with the funding that is requested..
- Statement of Need
Explain the need that can be met by your project. Describe the target population and geographic area. Provide a few significant statistical facts and several examples.
- Methodology
How will you solve the need? Describe the project succinctly and include the major activities, names and titles of key project staff, and your project's objectives.
- Other Funding Sources
If you are approaching other entities for support of this project, mention them in a brief paragraph. Include already secured funding if you have that and indicate how you expect to support the project activities after the initial time period.
- Summary
Restate the intent of your project, explain that you are ready to answer additional questions, and thank the funder for his or her time and consideration. Attachments that are consistent with the funder's guidelines can be included.
A budget may or may not be required for your letter of inquiry. Check the funder's own guidelines. Some guidelines are very specific, and it is important to follow them exactly. For instance, these guidelines from The Cailloux Foundation specify that the LOI should be submitted online, using the foundation's own form, and spells out exactly the attachments that should be included.
Letter of Inquiry Template
Since the letter of inquiry is a mini-proposal, review the elements of a full proposal before attempting the letter of inquiry.
The following is a very plain vanilla outline of the basics of a LOI. Yours should be adapted to your organization, to the grantor who will receive it, and provide a compelling case for your project. Since a LOI is brief (typically about 3 pages), the details you include and the language you use should be chosen very carefully.
(Use Organization Letterhead)
LETTER OF INQUIRY (Center this at the top of your letter - See these LOI tips)
Date
Name
Title
Organization
Address
City, State, Zip
Website URL
Dear Name: (Name should be that of a particular program officer rather than a generic title. Check the funder's website for names or call funder's office and ask to whom the letter should be sent)
The (YOUR ORGANIZATION) seeks support of (AMOUNT) from the (GRANTOR ORGANZATION) for (KIND OF SUPPORT) of (PROJECT). (1 OR 2 SENTENCES DESCRIBING HOW THIS PROJECT FITS WITH THE GRANTOR'S GUIDELINES, GOALS, AREAS OF INTEREST)
Our organization, established in (DATE), serves the (GEOGRAPHIC AREA OR COMMUNITY) with these services: (SHORT LIST). (ADD 1 OR 2 SENTENCES DESCRIBING MISSION, ACCOMPLISHMENTS, AWARDS RECEIVED OR OTHER ORGANIZATIONAL DISTINCTIONS).
The project for which we are requesting funds will make a difference in the lives of (NAME CLIENTS, RECIPIENTS, PEOPLE WHO WILL BENEFIT) in the following way: (STATE SPECIFICS OF PROJECT - THE ACTIONS YOU WILL TAKE).
We anticipate that the (NAME OF PROJECT) will take approximately (AMOUNT OF TIME), cost (TOTAL AMT OF MONEY), and we expect to achieve the following: (LIST 2 TO 4 CONCRETE RESULTS).
At this time, we are pleased to have received (MENTION ANY OTHER GRANT SUPPORT, VOLUNTEER HELP, IN-KIND SERVICES, RESTRICTED PLEDGES, ETC) for this project. We anticipate that support for (RESEARCH, FIRST YEAR, FIRST TWO PHASES, ETC.) will come from (FUNDING SOURCES) and future, ongoing support for the project will be supplied by (MENTION FUNDING SOURCES THAT WILL KEEP THE PROJECT GOING...OR UNTIL THE END OF A LIMITED TIME PROJECT).
As you can see our (PROJECT) will (WHAT WILL BE ACHIEVED) in an innovative and cost-effective manner. It will provide a valuable element to providing relief for (CLIENTS/RECIPIENTS). We are sure that you will find that our (PROJECT) fits with the mission of your foundation to (FOUNDATION'S MISSION/GOAL/INTERESTS).
We invite you to visit our (ORGANIZATION/OR PROJECT) at your convenience. We will be happy to submit a full proposal for your review or answer any questions that you may have. We look forward to hearing from you.
Sincerely,
Name, Title
Phone Number
Email Address
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