What is a Letter of Inquiry for Grants?

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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. This process often serves as the initial step in a two-part granting approach. Additionally, even if a LOI is not mandatory, it can be an excellent way to start building a relationship with a potential funder. In some cases, a letter of intent board of directors may also be involved, highlighting the importance of formal communication in securing support.

A letter of intent from the board of directors serves as a brief introduction to capture a funder's attention and interest in your organization and the project for which you seek support. In addition to providing an overview of your organization and project, this letter of intent includes a request for the Grantmaker to consider reviewing your organization’s full proposal or funding application. This letter of intent will be your organization’s introduction to a potential funder, giving you a vital opportunity to make a great first impression. So, you need to make it count!

The most critical first step of an LOI, especially when addressing a letter of intent for the board of directors, 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.

Introduction to your organization and mission, including the purpose of this letter of intent for the board of directors. We are approaching this foundation or funder due to the excellent fit with our objectives. We aim to address a critical need or problem facing our community. The solution we are proposing aligns with the mission of the funder. We anticipate significant outcomes and impact from our initiative. The amount we plan on requesting will support our efforts effectively. We kindly request the opportunity to submit a full proposal or online application.

Keep your letter of intent board of directors to under two pages. Focus on expected results and use the language that resonates with funders.

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

· Research volunteers who may know someone on the funder Board of Directors to enhance your outreach. 

· Ask a volunteer leader to follow up on your letter of intent with a Board member – a direct connection can be very effective. 

· If there are no connections or you receive no response to your letter of intent, make sure to follow up after six weeks. 

· Send program updates as part of your follow-up to demonstrate sustainability and keep the Board of Directors informed. 

The good news is that letters of intent can generate a grant or contribution on their own!