Make a Great Impression with Your Letter of Inquiry (LOI)

Start off on the right track by submitting well-constructed LOI.

Jean Wong
4 min readJul 10, 2017

Many foundations will ask for or require a Letter of Inquiry (LOI) as the first step in their grant-making process. From the nonprofit’s side, a LOI saves time by allowing the writer to focus on the core idea rather than developing a lengthy proposal. On the foundation’s side, a LOI allows grant-makers to review several nonprofits very quickly, scanning for those that best fit the foundation’s own goals.

Your ultimate goal by submitting a Letter of Inquiry (LOI) is to get an invitation to submit the full proposal. In this post you’ll learn how to create a well-constructed LOI and why you should treat it as seriously as you would the full proposal.

A LOI is essentially a mini-proposal. Think of it as your first chance to make a great impression to a grant-maker. Just like a proposal, make sure to keep your document clear, concise and captivating.

Submitting a LOI does add a step to the grant application process for you but it’s really a winning situation for both parties. LOI’s are relatively short documents that can be written up quickly and it takes away the labor of finding out if you fit within the funder’s priorities. In addition, funders have smaller volume of documents to review come time for the full proposals, helping the process run more efficiently.

Like a grant proposal, the letter of inquiry should include the following sections:

The introduction serves as the executive summary for the LOI and includes the name of your organization, the amount needed or requested, and a description of the project. You can also include the qualifications of project staff, a brief description of evaluative methodology, and a timetable. Be sure to include your perfected elevator pitch to help start things off.

The project description must convince the reader that there is an important problem that can be solved by your project. Your project description includes: a description of the target population and geographical area, data, and concrete examples. In addition to the problem presented, you’ll need to include what your organization plans to do to solve the problem. Present a clear, logical, and achievable solution to the problem being solved.

The organization description should be brief and focused on the ability of your nonprofit to solve the problem your project is based on. Provide a short history and description of your current programs while demonstrating a direct connection between what you do now and what you want to do with the requested funding.

The cost of the project should be briefly explained. Specify how much your approach will cost, how much you’re asking the funder to contribute, and how will you use the funds. You can include a list of other funding sources being approached for support to provide the grant-makers an idea of who else may be involved in supporting your cause.

The recap should restates the intent of the project, offers to answer additional questions, and your appreciation to the potential funder for its consideration.

As you start to develop your LOI, keep the following tips in mind.

  1. Follow directions exactly.
    Every foundation has their own way of handling LOIs and usually have a preference for contact. Some grant-makers provide a LOI application form while others may prefer a simple letter. Make sure you understand what is expected of you before you submit. Only include attachments if asked for them, and be sure to follow any additional guidelines for attachments.
  2. Your LOIs should be no longer than 2 pages.
    LOIs may arrive in large batches and are hurriedly reviewed, so they need to leave the reader wanting to know more and should build confidence that your nonprofit can get the job done. If your LOI is too long, you risk significant points being overlooked. Make every sentence count!
  3. A budget may or may not be required with your LOI.
    You can determine how much you should ask for from the foundation’s past 990 forms. The 990 form can help you identify past awarded organizations, organizations similar to yours, and the average amount previously granted. Use this data as a starting point and adjust your budget accordingly.
  4. Proofread
    Check your grammar and spelling. Don’t come off as unprofessional with grammatical and/or spelling errors!

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