INITIATING a RELATIONSHIP WITH THE FUNDER OF YOUR DREAMS!

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THE LETTER OF INQUIRY OR INTEREST - LOI

Many foundations and corporations require a Letter of Interest or Inquiry (LOI) before allowing organizations to apply for funding. It is often the first part of a two-step granting process. However, even if a LOI is not mandatory, it is still an ideal way to initiate your relationship with a potential funder.

An LOI is a brief introduction letter to attract a funder's attention and interest in your organization and the project you seek support for. In addition to an organizational and project overview, an LOI includes a request for the Grantmaker to consider reviewing your organization’s full proposal or funding application. An LOI will be your organization’s introduction to a potential funder and your single shot at making a great first impression. So, you need to make it count!

The most critical first step of an LOI is ensuring you provide the information the funder requires. Although the format of your letter can be flexible, here are some simple steps to follow.

1. Introduction to your organization & mission
2. Why the foundation/funder is being approached – the fit
3. The need or problem you are addressing
4. The solution you are proposing 
5. Expected outcomes and impact
6. The amount you plan on requesting
7. Request to submit a full proposal or online application

Keep your LOI to under two pages. Focus on expected results. Use funder language.

Don’t stop there. Follow-up is critical to success! 

· Research volunteers who may know someone on the funder Board of Directors

· Ask a volunteer leader to follow up on your LOI – Board member to Board member.

· If there are no connections or no response to your LOI, follow up after six weeks.

· Send program updates as part of your follow-up. Demonstrate sustainability.

The good news is that LOIs can generate a grant or contribution on their own!